ANALYST: WTW PT cut from 24 to 20 at Credit Suisse

On Friday Credit Suisse lowered its price target for Weight Watchers International

from $24 to $20. WTW is a global consumer company and a provider of weight management services. The firm is operated by a combination of company owned and franchise operations. Analysts at Credit Suisse write, “There was some expectations that this year could be a little different with the relatively new management team breaking the celebrity marketing mold and promising the biggest product innovation since the PointsPlus system was introduced back in 4Q10. The cornerstone of this year's product innovation was built around greater human connection and a more "realistic" television advertising campaign. The January rollout included greater human connection in the form of 24/7 online chat support for members, but also the ability to pay a higher monthly rate for a one-on-one personal coaching experience. Our early assessment suggests that the challenging competitive environment has persisted…. estimates have F15 revenues modeled down in the low-to-mid-single digit range, and expectations remain quite muted. The recent sell-off in the shares combined with low expectations, longtime PE ownership in the shareholder base, and the ongoing cash flow should provide some downside support in the shares." The firm maintained its F15 and F16 EPS estimates of $1.35 and $1.65. Before trading on Friday WTW is priced at $17.93 a share.