- A Goldman analyst upgraded shares of weight loss and fitness company WW International (WW), formerly Weight Watchers, and predicted that the price could triple.
- The analyst highlighted the acquisition of subscription telehealth platform Sequence, which will allow WW to sell prescription weight loss medications.
- WW shares jumped 59% on April 11, but even after those gains, they have still lost a third of their value over the past 12 months.
Shares of WW International (WW) skyrocketed after Goldman Sachs upgraded the stock and indicated that its price could more than triple.
Goldman analyst Jason English raised his rating on the company formerly known as Weight Watchers from neutral to buy. In addition, he set a 12-month price target of $13, a 216% jump from the closing price on April 10.
English pointed to WW's acquisition of Sequence, a subscription telehealth platform providing healthcare professionals specializing in chronic weight management. Through Sequence, WW will be able to offer clients prescription obesity drugs.
Next Step for WeightWatchers
CEO Sima Sistani said that, given the advancements in chronic weight management medications, moving into clinical interventions for those who medically qualify "is a natural next step for WeightWatchers."
Sistani said that the company is "at a pivotal point where we can build new capabilities that will expand our market, reinforced by our foundational strengths."
WW International shares soared 59% on April 11 and are up about 70% in 2023. However, even with the day's gains, the stock has lost more than a third of its value over the past 12 months.