Market Overview

B. Riley FBR Raises Weight Watchers Price Target After 'Healthy' Q4 Print

Share:
B. Riley FBR Raises Weight Watchers Price Target After 'Healthy' Q4 Print
Related WTW
44 Biggest Movers From Friday
Not Enough New Year's Resolve: JPMorgan Downgrades Weight Watchers

Weight Watchers International, Inc. (NYSE: WTW) reported better-than-expected fourth quarter results after the close Tuesday, with a 23-percent year-over-year jump in suscribers.  

The Analyst

B. Riley FBR analyst Kara Anderson reiterated a Buy rating on Weight Watchers and increased the price target from $86 to $98, suggesting roughly 40-percent upside from current levels.

The Thesis

Weight Watchers showed robust growth in Q4 across both its in-person and online platforms and all geographies, Anderson said in a Wednesday note. Recruitment improved due to the launch of the WW Freestyle plan in late December, the analyst said. 

Signaling a continuation of the healthy momentum, Weight Watchers said on the earnings call that recruitment growth is at its highest since turning positive in the fourth quarter of 2015, Anderson said. Member count could exceed 4 million by the end of the first quarter, she said. 

Weight Watchers guided 2018 revenues to $1.55 billion, up 19 percent year-over-year; adjusted EBITDA to $450 million; and earnings per share to $2.40-$2.70, ahead of the $1.90 consensus estimate, according to B. Riley FBR. 

The guidance keeps the company on track to achieve its $2-billion-plus 2020 revenue goal, Anderson said. B. Riley FBR looks for strong EBITDAS generation, helped by continued recruitment and retention amid a new articulation of the Weight Watchers brand later in 2018 and summer campaign. 

The Price Action

Weight Watchers' shares were up about 434 percent over the past year until Tuesday.

The stock was up 4.34 percent at $72.86 at the time of publication Wednesday morning. 

Related Links:

The Oprah Effect: Weight Watchers Pops On 2020 Speculation

Weight Watchers Drops After Oprah Says She Isn't Interested In Running For President

Latest Ratings for WTW

DateFirmActionFromTo
Jan 2019JP MorganDowngradesOverweightNeutral
Nov 2018Bank of AmericaMaintainsBuyBuy
Nov 2018JP MorganMaintainsOverweightOverweight

View More Analyst Ratings for WTW
View the Latest Analyst Ratings

Posted-In: B. Riley FBR Kara AndersonAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (WTW)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FNDUBSUpgrades37.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

This Day In Market History: Pension Benefit Guaranty Corp. Makes First Payout

Dicks Sporting Goods Will No Longer Sell Assault-Style Rifles