WeightWatchers gains as Craig-Hallum upgrades on obesity drugs potential

WW International

27/09/2023 15:37

** Shares of WW International  WW.O , also known as
WeightWatchers, rise 8.6% to $11.17 after Craig-Hallum upgrades
stock to "hold" from "sell"
    ** Craig-Hallum says it underestimated investor interest in
the GLP-1 medications for weight-loss made by Novo Nordisk
 NOVOb.CO  and Eli Lilly  LLY.N  
    ** WW's acquisition of Sequence in March gives it a foothold
in the GLP-1 market through a telehealth business that
prescribes these drugs 
    ** Brokerage expects health insurers to partner with co in
the long-term to make the costly drugs widely available to meet
increasing demand 
    ** Envisions revenue from co's clinical business to rise 3x
in FY24 from $30 mln in FY23, says brokerage, raising PT on
stock to $10 from $4
    ** Of 7 analysts covering stock, 3 rate it "buy", 3 "hold"
and 1 "sell"; median PT stands at $12.50
    ** As of last close, WW shares had gained 165.9% since March
6, before the announcement of Sequence's acquisition 
    

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))