Weight Watchers International Received its Third Buy in a Row

By Ryan Adsit

After Craig-Hallum and Sidoti assigned a Buy rating to Weight Watchers International in the last month, the company received another Buy, this time from B.Riley FBR. Analyst Kara Anderson reiterated a Buy rating on Weight Watchers International (NYSE: WTW) today and set a price target of $98. The company’s shares closed yesterday at $65.40.

Anderson said:

“On Monday (3/12/2018), B. Riley FBR hosted Buy-rated Weight Watchers’ (WTW, $98 PT) management on a non-deal roadshow. Discussions were wide-ranging, although with primary emphasis on subscriber recruitment, retention, and engagement and partnerships/licensing deals aimed at broadening the appeal and reach of the company. Certainly, management was excited to discuss its recently announced initiatives for fresh ready to cook meal kits and a line of kitchen products that we expect to be incremental margin contributors. Launching off the momentum of WW Freestyle (as branded in N.A.), we expect WTW to continue to explore additional ways and announce new ventures to engage its new recruits, and doing so outside of just the traditional New Year time frame, as well improve the value proposition and loyalty among existing members to keep retention rates moving in the right direction.”

According to TipRanks.com, Anderson is a 3-star analyst with an average return of 2.6% and a 44.0% success rate. Anderson covers the Services sector, focusing on stocks such as Spark Networks Plc, Nutrisystem Inc, and TheStreet.

Currently, the analyst consensus on Weight Watchers International is Strong Buy and the average price target is $93.67, representing a 43.2% upside.

In a report issued on February 28, Craig-Hallum also reiterated a Buy rating on the stock with a $100 price target.

Based on Weight Watchers International’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $313 million and quarterly net profit of $63 million. In comparison, last year the company earned revenue of $267 million and had a net profit of $13.3 million.

Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Oprah Winfrey, a Director at WTW sold 1,998,702 shares for a total of $120,124,027.

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Weight Watchers International, Inc. engages in the provision of weight management services. It operates through the following geographical segments: North America, United Kingdom, Continental Europe, and Other. The North America segment consists of United States and Canada Company-owned operations.