Deutsche Bank Cuts GNC Holdings to “Neutral”; Sees Several Risks (GNC)

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Nutritional supplements retailer GNC Holdings Inc. ( GNC ) late Wednesday caught a big downgrade from analysts at Deutsche Bank.

The firm cut its rating on GNC from "Buy" to "Hold" and slashed its price target from $50 to $42. That new target suggests a 13% upside to the stock's Wednesday closing price of $37.20.

Deutsche Bank cited several reasons for the downgrade, including insider selling by the CEO, weak stock price response to positive catalysts, and a cloudy outlook past 2012. Accordingly, the firm also lowered its earnings estimates for the company and expressed some serious risk concerns.


GNC Holdings shares fell $1.50, or -4%, in premarket trading Thursday.

The Bottom Line
Shares of GNC Holdings ( GNC ) have a 1.18% dividend yield, based on last night's closing stock price of $37.20. The stock has technical support in the $33-$35 price area. If the shares can firm up, we see overhead resistance around the $40-$42 price levels.

GNC Holdings Inc. ( GNC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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