Skip to main content

Market Overview

Why Weight Watchers Could Post 10% Subscriber Growth

Why Weight Watchers Could Post 10% Subscriber Growth

WW International Inc (NASDAQ: WW) snagged a bullish upgrade from DA Davidson, premised on strong subscriber growth and an attractive valuation.

The WW Analyst

Linda Bolton Weiser upgraded WW from Neutral to Buy and increased the price target from $33 to $56.

The WW Thesis

The 2020 consensus sales growth estimate of 5% for WW is modest, Bolton Weiser said in a Friday note. The analyst estimates subscriber growth could be at least 10% in the first quarter and 2020, basing her view on the recent trends and the third-quarter subscriber number of 4.43 million.

Historically, WW's subscriber numbers decline sequentially in the second quarter through the fourth quarter, and increase by double-digits in the first quarter. The analyst estimates a 20% sequential increase in subscribers in the first quarter of 2020, slightly higher than the 17% growth in the first quarter of 2019, which was a "bad" year without a new program launch.

In 2020, there is the myWW plan, which is being well received. For the remainder of 2020, Bolton Weiser models 9-10% growth range for each quarter, if the magnitude of sequential decline by quarter follows the same trend in 2019.

The analyst's conservative estimate calls for the company to end 2020 with 4.6 million subscribers.

For the first quarter, DA Davidson estimates sales of $378 million, EBITDA of $50.9 million and gross margin of 56.3%. This compares to the consensus estimates, which call for sales of $382 million, EBITDA of $42.3 million and gross margin of 55.8%.

The company is scheduled to report its fourth-quarter results Tuesday.

WW Price Action

WW's stock traded higher by 2.2% to $38.65 per share at time of publication.

Related Links:

Barron's Picks And Pans: Conagra, JPMorgan, L Brands, Weight Watchers And More

3 Stocks On The Move In The New Year

Latest Ratings for WW

May 2021DA DavidsonMaintainsBuy
Apr 2021Morgan StanleyDowngradesOverweightEqual-Weight
Feb 2021DA DavidsonMaintainsBuy

View More Analyst Ratings for WW
View the Latest Analyst Ratings


Related Articles (WW)

View Comments and Join the Discussion!

Posted-In: DA Davidson Linda Bolton WeiserAnalyst Color Upgrades Price Target Previews Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

FIBKStephens & Co.Downgrades
LEAFCanaccord GenuityDowngrades8.5
AGMSidoti & Co.Downgrades115.0
KEXGabelli & Co.Downgrades
OCGNCantor FitzgeraldDowngrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at