(Bloomberg) — Shares of WW International, formerly known as WeightWatchers, soared 59% Tuesday in its biggest move since March after it gained a new bull on Wall Street following the closing of its acquisition of a supplier. of telehealth that will help you access the growing market for new anti-obesity drugs.
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Goldman Sachs analyst Jason English raised his rating on the shares to buy from neutral following the companies’ acquisition of Sequence. English also raised its WW price target to $13 from $3.80, implying the shares could rise 216% from Monday’s close.
“We believe a catalyst for change has emerged with your new obesity drug on-ramp solution,” he wrote in a note. “With the now complete acquisition of Sequence, WW will begin offering a pharmaceutical-based clinical subscription service that can integrate with its legacy behavior-based weight management offering.”
Taking advantage of the booming market should boost WW’s earnings per share, which would send the stock higher, he said. English’s price target makes him the biggest WW bull on the street, according to data compiled by Bloomberg.
WW first announced that it reached a $132 million deal with Sequence in March. It marked a major shift for WW by bringing in an emerging class of weight-loss drugs, which have been subject to social media frenzy and scarcity as they’ve grown in popularity.
That news also sent the stock up 79% in one day, a gain that had been largely eroded as of Tuesday as investors reflected on declining WW subscribers and revenue. WW shares, which hit highs of more than $100 in 2018, closed at $6.55 after Tuesday’s rally.
–With the help of Katrina Lewis.
(Updates for market close at all times).
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