WW International (WW) is exploding, as hoped.
On April 11, we noted, “Investors may want to keep an eye on WW International – formerly Weight Watchers. The stock is up 53% on a volume spike to 42.8 million shares. All after WW acquired telehealth provider, Sequence, which will also give it access to a growing market for obesity drugs. Better, Goldman Sachs just raised its price target on WW to $13.”
At the time, WW traded around $6. It’s now up to $9.07.
All thanks to its latest acquisition of Sequence, and two bullish analysts.
DA Davidson analyst Linda Bolton Weiser has a buy rating on the WW stock with a $9 price target, noting: The company’s acquisition of Sequence and ability to offer scripts for Wegovy is a “game-changer”. Over 70% of WW members are obese and possible drug candidates, and if the company trades up just 10% of its obese North America subs to $99 monthly drug maintenance, it could add over 50% to North America sales.
Even Goldman Sachs analyst Jason English just upgraded WW to a buy rating, with a price target of $13 from $3.80 a share.
After exploding, WW may be due for a healthy pullback.