Weight Watchers International (WW) PT Raised to 'Street High' $63 at DA Davidson

DA Davidson analyst Linda Bolton Weiser raised the price target on Weight Watchers International (NASDAQ: WW) to a 'Street High' $63.00 (from $56.00) while maintaining a Buy rating.

The analyst commented, "WW reported a successful diet season, and guided to Y/Y subscriber growth in the mid-teens in 1Q20, with low-double digit sales growth in 2020. This month, subs hit an all-time high of >5M. We are encouraged by: (1) the pilot study to add a third mid-priced product, virtual group coaching; (2) myWW's ability to satisfy existing, lapsed, and new members (unlike other new plans); and (3) studio recruitment turning positive in 4Q19. EPS guidance for 2020 was $2.15-$2.40 vs. consensus of $2.15. We are increasing our estimates, boosting our PT to $63 from $56, based on 25x 2021E EPS of $2.50 (raised from $2.22), and reiterating our BUY rating."

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