Auriga Starts Nutrisystem (NTRI) at Buy; New Initiatives Could Spice Up Future Earnings
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Price: $42.89 --0%
Rating Summary:
0 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga initiates coverage on Nutrisystem (NASDAQ: NTRI) with a Buy. PT $19.00.
Auriga analyst says, "Despite challenges earlier this year, Nutrisystem has been able to rebound due to its efficient operating efforts as well as its targeting promotional campaigns. After disappointing early year guidance, the company exceeded expectations in the first and second quarter. We expect the company to bounce back in 2012 through efforts to improve its menu, a revitalized marketing effort, as well as expansion into new markets. Overall, we expect Nutrisystem to produce financial results closer to 2010 levels."
"Our $19 target price is based on a 15.5x multiple of 2012 EPS, which is in-line with Weight Watchers and last year's forward P/E multiple as well as a discounted cash flow analysis of Nutrisystem's expected cash flows over the next few years and assigning a 5.0x terminal value, which represents a discount to its enterprise multiple observed over the past couple years."
For more ratings news on Nutrisystem click here and for the rating history of Nutrisystem click here.
Shares of Nutrisystem closed at $12.07 yesterday.
Auriga analyst says, "Despite challenges earlier this year, Nutrisystem has been able to rebound due to its efficient operating efforts as well as its targeting promotional campaigns. After disappointing early year guidance, the company exceeded expectations in the first and second quarter. We expect the company to bounce back in 2012 through efforts to improve its menu, a revitalized marketing effort, as well as expansion into new markets. Overall, we expect Nutrisystem to produce financial results closer to 2010 levels."
"Our $19 target price is based on a 15.5x multiple of 2012 EPS, which is in-line with Weight Watchers and last year's forward P/E multiple as well as a discounted cash flow analysis of Nutrisystem's expected cash flows over the next few years and assigning a 5.0x terminal value, which represents a discount to its enterprise multiple observed over the past couple years."
For more ratings news on Nutrisystem click here and for the rating history of Nutrisystem click here.
Shares of Nutrisystem closed at $12.07 yesterday.
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