The firm set a price target of $48 for the New Jersey-based retailer of nutritional supplements, down from its previous mark of $49.
Goldman Sachs said the company's margin recovery has yet to materialize due to investments and a number of fundamental factors, and share upside has become less compelling.
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"We continue to expect an inflection in EPS growth in 4Q14, but now see greater upside in shares of GNC Holdings (GNC) ," said analysts at Goldman Sachs.
Shares of Vitamin Shoppe closed up 3.59% to $47.07 on Thursday.
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 multiple 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 revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."