GNC - Macquarie rates the stock as Neutral
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New growth initiatives have been announced for the next 6-12 months and Macquarie believes these are clear drivers for the share price, although the near-term catalyst of beating the top end of net profit guidance has largely diminished.
The broker expects the stock to be range bound heading into the September result in the absence of this potential to beat guidance. Longer term, Macquarie expects contributions from strategic initiatives will cushion the business against seasonal adversity. Neutral rating and $10 target retained.
Sector: Food, Beverage & Tobacco.
Target price is $10.00.Current Price is $9.19. Difference: $0.81 - (brackets indicate current price is over target). If GNC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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