In a report released today, Brian Nagel from Oppenheimer maintained a Buy rating on Weight Watchers International (WTW), with a price target of $40. The company’s shares closed yesterday at $29.88, close to its 52-week low of $27.97.
Nagel noted:
“We stick with our Outperform rating on WW (WTW). Our price target on WTW is reset to $40 (from $98), suggesting upside of more than +30% from current levels. Market sentiment towards WTW has deteriorated significantly lately, as investors have increasingly fretted over the potential for waning subscriber growth at the company. WTW will report Q4 (Dec.) results on Feb. 26th. We have studied a myriad of data. While we cannot rule out a seemingly transitory moderation in subscriber growth at WTW lately, we are hard-pressed to envision the company’s increasingly solid and digitally driven business model deteriorating completely. At current levels, WTW now trades at a valuation on par with historical troughs. Our continued positive call on WTW is speculative and value-based.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 6.9% and a 61.6% success rate. Nagel covers the Services sector, focusing on stocks such as Capri Holdings Limited, Dick’s Sporting Goods, and Advance Auto Parts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Weight Watchers International with a $74.33 average price target, representing a 148.8% upside. In a report issued on February 11, Sidoti also maintained a Buy rating on the stock with a $99 price target.
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The company has a one-year high of $105.73 and a one-year low of $27.97. Currently, Weight Watchers International has an average volume of 2.36M.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock.
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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.
