Deutsche Bank downgraded the New Jersey-based nutritional supplement retailing company to "hold" from "buy," and set a price target of $43, down from its previous mark of $50.
"[Vitamin Shoppe]'s 3Q14 missed on the top line and on expenses, the comp guidance for 4Q is disappointing, [selling, general & administrative expenses] in 3Q was very disappointing and FY15 comments indicate higher SG&A will not abate, and FY15 preliminary guidance comments brings our already-below-the-street EPS down by an additional $0.06," analysts at Deutsche Bank said.
Sterne Agee downgraded Vitamin Shoppe to "neutral" from "buy," and cut the price target to $42 from $53, pointing to a potential downside of 8.16% from the company's current price.
Separately, TheStreet Ratings team rates VITAMIN SHOPPE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VITAMIN SHOPPE INC (VSI) a BUY. This is driven by some important positives, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VSI's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- VSI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
- VITAMIN SHOPPE INC's earnings per share declined by 8.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VITAMIN SHOPPE INC increased its bottom line by earning $2.18 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($2.27 versus $2.18).
- In its most recent trading session, VSI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Specialty Retail industry average. The net income has decreased by 7.3% when compared to the same quarter one year ago, dropping from $18.26 million to $16.93 million.
- You can view the full analysis from the report here: VSI Ratings Report