UPDATE: Bank of America Downgrades Weight Watchers International; Lowers PO
According to a research report published this morning, Bank of America downgraded Weight Watchers International (NYSE: WTW) from Buy to Neutral, and lowered its price objective from $82 to $53.
In the report, Bank of America commented, "Based mainly on less than robust industry data trends, we are more concerned that WTW may have a larger than expected cut to 2012 guidance when it reports in early August. While P/E valuation seems to already reflect a sizable revision, and we still see significant long-term growth drivers, the nearterm risk is that the combo of an unforgiving market and a now highly levered company in poor standing with investors (following the Dutch tender at $82 and subsequent guidance cut), could lead to a discounted EV/EBITDA valuation. Our new target valuation is based on an EV/EBITDA valuation of 9x our 2013 est, suggesting a P/E of ~10.5x."
Weight Watchers closed yesterday at $50.53.
Latest Ratings for WTW
|Mar 2015||Credit Suisse||Downgrades||Neutral||Underperform|
|Mar 2015||Morgan Stanley||Downgrades||Equal-weight||Underweight|
|Jan 2015||Credit Suisse||Maintains||Neutral|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.