Weight Watchers International (WW) PT Raised to $39 at DA Davidson

DA Davidson analyst Linda Bolton Weiser raised the price target on Weight Watchers International (NASDAQ: WW) to $39.00 (from $33.00) while maintaining a Buy rating.

The analyst commented, "WW's 1Q21 operating profit beat consensus, with a small miss on the revenue line. Subs were -1.5% to 5.0M, slightly below our 5.06M estimate. Revenue should be flat Y/Y in 2Q21 and then up double-digits in 2H21. WW nudged up its guidance comments, now expecting 2021 revenue and operating profit to exceed 2020, rather than "meet or exceed." We are raising our annual EPS estimates by 18% due to lower interest expense and tax rate and higher operating profit. We are boosting our PT to $39 from $33, based on 15x 2022E EPS of $2.62, and reiterating our BUY. WW is inexpensive, with an outlook for double-digit revenue and profit growth in 2H21."

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