Having dropped over 75% in one year, today NASDAQ:WW found some relief as a bearish analysts backed down somewhat as JP Morgan upgraded its investment rating on Weight Watchers (to neutral from underweight and raised its price target on the stock to $22 from $17, sending the stock more than 7% higher. "We believe that steps taken to redirect the marketing message to dieting have worked to stabilize recruitment trends," JPMorgan analysts wrote in a note to clients. The health and wellness company saw its stock tumble nearly 30% on Feb. 26 after its fourth-quarter results and guidance fell short of Wall Street’s expectations, prompting downgrades from a slew of analysts. The stock had already been falling badly from a 52-week high of $96.47 reached in July 2018. It bottomed at $16.71 on May 31 and is 42% since.
Technically the stock is on the verge of a breakout and if successful there is a gap above with practically no price resistance offering up a 20% move for the bulls.
AVERAGE ANALYSTS PRICE TARGET $22 AVERAGE ANALYSTS RECOMMENDATION HOLD P/E RATIO 9.7 SHORT INTEREST 14%
COMPANY PROFILE 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. The United Kingdom segment includes United Kingdom Company-owned operations. The Continental Europe segment comprises of Germany, Switzerland, France, Spain, Belgium, Netherlands, and Sweden Company-owned operations. The others segment offers Australia, New Zealand, Mexico, and Brazil Company-owned operations, as well as revenues and costs from franchises in the United States. The company was founded by Jean Nidetch in 1963 and is headquartered in New York, NY.