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Wedbush Downgrades Nutrisystem (NTRI) to Neutral; Aggressive Promotional Activity May Reflect Disappointing Consumer Response

February 2, 2012 7:45 AM EST
NTRI Hot Sheet
Rating Summary:
    3 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wedbush downgraded Nutrisystem (NASDAQ: NTRI) from Outperform to Neutral, price target cut from $15 to $11.

Wedbush analyst says, "We note NTRI has run two promotions in recent weeks, including 20% off plus $20 back from January 9-13, and 50% off first month’s purchase of the core program from January 23-31. Today, Nutrisystem launched a new 40th anniversary sale for the month of February, offering 40% off all auto-delivery orders...We believe the stepped-up promotional offerings during the key selling season reflects disappointing consumer response to Nutrisystem’s new program, spokespersons, and marketing campaign and indicates another year of heavy discounting could be underway."

For an analyst ratings summary and ratings history on Nutrisystem click here. For more ratings news on Nutrisystem click here.

Shares of Nutrisystem closed at $11.40 yesterday, with a 52 week range of $10.46-$22.64.


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