Story updated at 9:50 a.m. to reflect market activity.
Shares of GNC gained 0.5% to $39.35 in morning trading.
The analyst firm raised its price target for the company to $46 from $34. GNC has reduced its promotions, and faces easier near-term comps, according to Wedbush analyst Kurt Frederick.
"We have seen a decline in store promotional activity in recent weeks following heavy discounting in July/August," Frederick wrote. "Although trends haven't experienced noticeable improvement, recent mailer with coupons personalized to prior purchases, signage less focused on discounting and new products including expanded MusclePharm and GNC PureEdge product lines are a step in the right direction,in our view. Online promotions remain high, however, which we expect to continue."
Separately, TheStreet Ratings team rates GNC HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GNC HOLDINGS INC (GNC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."