UPDATE: Barclays Starts "Overweight" Coverage on GNC Corp. (GNC); Typical Buyer: Above-Average Income, Committed to Heathly Lifestyle = Recession Resistant

August 21, 2012 7:15 AM EDT
Get Alerts GNC Hot Sheet
Price: $9.06 -1.74%

Rating Summary:
    5 Buy, 9 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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(Updated - August 21, 2012 1:36 PM EDT)

Barclays initiates coverage on GNC Corp. (NYSE: GNC) with an Overweight. PT $47.00.

Analyst, Bran Wang, said, "We have a differentiated view of GNC, as we see its greatest competitive advantage is its expertise in the development, manufacturing and marketing of innovative new products. Its strengths are very similar to those of the leading beauty companies, such as Estee Lauder (NYSE: EL) and L'Oreal, which use sophisticated marketing techniques to sell high quality products that have a strong perceived value but more limited tangible benefits. The stability of sales is also similar, in part because all three have a consistent pipeline of new products."

Wang tells investors that this stock is attractive right now because of: 1) vertical integration; 2) leverage of fixed expenses; 3) stock buybacks; 4) EPS growth (high-teens)

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

Shares of GNC Corp. closed at $35.95 yesterday.

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