Wedbush Downgrades GNC Corp. (GNC) to Neutral

Wedbush downgraded GNC Corp. (NYSE: GNC) from Outperform to Neutral with a price target of $44.00 (from $62.00).

Analyst Kurt Frederick said, "Downgrading to NEUTRAL as sales pickup in recent weeks has been less than anticipated and on increased promotional activity as industry slows, leading to lowered guidance. While we anticipated the negative impact of inclement weather on Q1 results, we underestimated the rise in promotional activity and overall slowdown in industry growth, partly due to negative media, as well as increased regulatory hurdles in various international markets such as Mexico (30% of international locations), which is reformulating products due to regulatory challenge. Given expected hurdles over the next several quarters, we are lowering our rating to NEUTRAL until we see improved industry trends with a more moderate promotional environment and rising sales performance at GNC."

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 $43.65 yesterday.

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