WW International jumps after brokerage upgrades to 'overweight'

WW International

26/07/2023 16:29

(Updates)
    ** Weight management services provider WW International's
 WW.O  shares rise 16.6% to five-month high of $11.59 
    ** Morgan Stanley upgrades company's shares to "overweight"
from "equal-weight"; raises PT to $13 from $5, highest on Wall
Street
    ** Brokerage notes company's acquisition of telehealth
platform Sequence should be enough to offset declines in core
business
    ** Sequence through its clinicians can prescribe medications
such as Wegovy and Saxenda, currently approved drugs for obesity
in the U.S. which fall under a class of medicines known as GLP-1
receptor agonists
    ** "The key tenet of the GLP-1 obesity drug bull case is
WW's ability to leverage its brand and lapsed member base to
drive low cost Sequence subscriber growth" - Morgan Stanley
    ** Brokerage notes that the near-term catalyst path is one
of the most robust across its coverage, and sees many events
that could support bull case over the next six months
    ** About 15.4% of WW's free float was shorted - Ortex
    ** As of last close, WW International shares had more than
doubled in value since the start of the year

 (Reporting by Shashwat Chauhan and Medha Singh in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com))