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Canaccord Adams Reiterates a 'Buy' Rating on NBTY (NTY), Adds to Best Ideas List

October 21, 2009 12:57 PM EDT
NTY Hot Sheet
Rating Summary:
    0 Buy, 1 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Canaccord Adams reiterates a 'Buy' rating on NBTY (NYSE: NTY), adds to Best Ideas List; raising target to $50 from $46.

Canaccord analyst says, "We are adding NBTY to our Best ideas list due to accelerating category growth, earnings momentum and our expectation that a significant revision to investor expectations for NBTY’s current level of earnings power will drive the shares materially higher. NBTY replaces Martek Biosciences (Nasdaq: MATK) on the list."

"We anticipate upside to both sales and earnings forecasts for the Q4 ended September 30. In addition to EPS upside driven by stronger revenue, we believe that commodity prices were more favorable this quarter and thus anticipate incremental gross margin improvement should add to EPS. While we anticipate that a continuation of the earnings momentum over the last couple of quarters could drive the shares higher, we believe that a revision to 2010 forecasts will be the more important driver of the shares. We expect that investors will look to annualize the Q3 and Q4 earnings levels to derive a F2010 EPS forecast in the $3.50-4.00 range compared to the current consensus forecast of $3.17."

To see more analyst ratings on NTY Click Here.

NBTY, Inc., together with its subsidiaries, manufactures, markets, distributes, and retails nutritional supplements in the United States and internationally.

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