Deutsche Bank Starts Vitamin Shoppe (VSI) at Buy; Key Structural Advantages Differentiate the Model

September 15, 2011 9:32 AM EDT
Get Alerts VSI Hot Sheet
Price: $6.50 --0%

Rating Summary:
    2 Buy, 15 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 23 | New: 20
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Deutsche Bank initiates coverage on Vitamin Shoppe (NYSE: VSI) with a Buy. PT $50.00.

Deutsche analyst says, "The VSI model is inherently strong for 3 reasons. First, VMS industry growth is one of the best in retail with a 5-yr. CAGR of 5.7%, fueled by today’s aging population. To this end, 22.2% of the U.S. population will be greater than 60 years old by 2020, up from 17.7% in 2008. Second, VSI faces limited price competition with Wal-Mart (NYSE: WMT) as SKU overlap is only 3-4%. Third, 87% of VSI sales are registered through its Healthy Rewards loyalty card, which gives the company excellent sales visibility and allows for marketing/advertising dollar efficiency."

For more ratings news on Vitamin Shoppe click here and for the rating history of Vitamin Shoppe click here.

Shares of Vitamin Shoppe closed at $41.33 yesterday.


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