Credit Suisse Downgrades Weight Watchers International to Neutral (WTW)
Weight Watchers International (NYSE:WTW) was downgraded by investment analysts at Credit Suisse from an “outperform” rating to a “neutral” rating in a note issued to investors on Wednesday, TheFlyOnTheWall.com reports. They currently have a $44.00 price objective on the stock, down from their previous price objective of $45.00. Credit Suisse’s price objective indicates a potential upside of 9.48% from the company’s current price.
The analysts wrote, “Ahead of WTW’s earnings report (10/30) and Investor Day (11/6), we thought it would be helpful to revisit key pressure points as well as our Google Trends analysis. WTW has been under pressure on a number of fronts and has lagged significantly, down 23% YTD (S&P up 23%). Following our recent meeting with management, it is our sense that the upcoming Analyst Day will help define the new long-term strategy for the company. We are increasingly convinced that the current status quo will not be good enough to drive shares higher. Despite an attractive FCF yield (~8%), strong brand equity and cost-optimization efforts, the turnaround process will likely be multi-year. With less than 10% upside to our revised $44 PT (from $45), we believe a Neutral rating is appropriate.”
A number of other firms have also recently commented on WTW. Analysts at Barclays initiated coverage on shares of Weight Watchers International in a research note to investors on Tuesday, September 24th. They set an “equal weight” rating on the stock. Separately, analysts at Zacks upgraded shares of Weight Watchers International from an “underperform” rating to a “neutral” rating in a research note to investors on Wednesday, September 4th. They now have a $37.50 price target on the stock. Finally, analysts at JPMorgan Chase & Co. cut their price target on shares of Weight Watchers International from $46.00 to $44.00 in a research note to investors on Friday, August 30th. They now have a “neutral” rating on the stock. Six investment analysts have rated the stock with a hold rating, The stock currently has a consensus rating of “Hold” and a consensus price target of $43.50.
Shares of Weight Watchers International (NYSE:WTW) traded down 2.24% on Wednesday, hitting $39.29. The stock had a trading volume of 381,435 shares. Weight Watchers International has a 52 week low of $35.58 and a 52 week high of $60.30. The stock has a 50-day moving average of $38.36 and a 200-day moving average of $42.25. The company has a market cap of $2.210 billion and a P/E ratio of 9.44.
Weight Watchers International (NYSE:WTW) last released its earnings data on Thursday, August 1st. The company reported $1.39 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.10 by $0.29. The company had revenue of $465.10 million for the quarter, compared to the consensus estimate of $459.34 million. During the same quarter in the prior year, the company posted $1.36 earnings per share. The company’s quarterly revenue was down 4.1% on a year-over-year basis. On average, analysts predict that Weight Watchers International will post $3.65 earnings per share for the current fiscal year.
Weight Watchers International, Inc (NYSE:WTW) is a global-branded consumer company and a provider of weight management services, operating globally through a network of Company-owned and franchise operations.
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