Analyst Nathan Feather from Morgan Stanley maintained a Hold rating on WW International (WW – Research Report) and keeping the price target at $1.10.
Nathan Feather has given his Hold rating due to a combination of factors impacting WW International’s current and future performance. The company’s recent cost reduction efforts have resulted in improved profitability, particularly in the fourth quarter, and the Clinic segment has shown positive growth. However, the core behavioral business faces challenges, with a difficult marketing environment and a smaller expected growth during the diet season, which raises concerns about the company’s ability to sustain long-term growth.
Additionally, the lack of guidance for the first quarter and fiscal year 2025 adds to the uncertainty surrounding the company’s future prospects. The competitive landscape in the weight-loss industry is becoming increasingly crowded, and WW International is burdened by significant interest expenses and uncertainties in the supply of compounded medications. These factors contribute to limited visibility into the company’s near-term and long-term trends, leading to the Hold rating as the company navigates its turnaround efforts.
WW’s price has also changed moderately for the past six months – from $0.849 to $0.640, which is a -24.62% drop .