Weight Watchers International Inc. (NASDAQ: WTW) shares dipped on Tuesday after one key analyst firm downgraded the stock. While being the biggest loser is touted as a great for most Weight Watchers customers, that’s not the best look for the company.
JPMorgan’s Christina Brathwaite downgraded Weight Watchers to Underweight from Neutral and cut its price target to $25 from $37. That implied downside of 17% from the most recent closing price of $30.28.
Brathwaite previously cut Weight Watchers to a Neutral rating from Overweight on January 11.
One main reason for this downgrade was daily active users (DAUs) on the WW app dropping in what Brathwaite is considering the most important period of the year — New Year’s resolutions. At the same time, she pointed out that website traffic and mobile user data were below expectations.
In the report, Brathwaite said that the U.S. DAU trends have only gotten worse, shrinking 35%, and the WW app reviews have become increasingly negative since the fall of 2018, with users issuing complaints on significant technical issues. Not to mention, competitors Noom and Diet Doctor are continuing to gain traffic share.
On the other hand, it’s acknowledged that there is a chance some of the DAU decline is related to technical challenges in the app and not entirely indicative of lower subscriber numbers.
Excluding Tuesday’s move, Weight Watchers had vastly underperformed the broad markets, with the stock down 21% year to date. Over the past 52 weeks, the stock was down 59%.
Shares of Weight Watchers were last seen down about 4% at $28.96, in a 52-week range of $27.11 to $105.73. The consensus price target is $72.18.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.