Numico "hold"

01/05/04 - ING Financial Markets

LONDON, January 5 (New Ratings) — Analyst Gerard Rijk of ING Financial Markets issues a "hold" rating on Numico (NUM). The target price is set to €21.

In a research note published this morning, the analyst mentions that the FDA has termed Ephedra, used in several nutritional supplement products, as dangerous and a sales ban is likely to be imposed. Numico has already sold its Ephedra-related products business units, GNC and Rexall Sundown, ING Financial Markets says. However, the analyst expresses his concern regarding the company’s high insurance expenses and the sales revenue loss associated with Ephedra.