WW International jumps after Morgan Stanley upgrades to "overweight"

WW International

26/07/2023 12:58

** Shares of weight management services provider WW
International  WW.O  rise 7.35% to $10.66 premarket
    ** Morgan Stanley upgrades to "overweight" from
"equal-weight", raises PT to $13 from $5
    ** Brokerage notes co's acquisition of GLP-1 obesity drug
telehealth platform Sequence should be enough to offset declines
in core business
    ** "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" - MS
    ** "Although it remains early, we are seeing encouraging
signs the bull case is beginning to play out as Sequence has
tripled its market share of free web traffic to GLP-1 telehealth
players post-acquisition" - MS
    ** 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
    ** As of last close, stock had more than doubled in value
since the start of the year

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))