Barclays says GLP-1 compounding bear case not reflected in WeightWatchers shares

Barclays is “increasingly cautious” on WeightWatchers (WW) following a recent study from Novo Nordisk (NVO) that yielded negative datapoints around the investigated differences between the company’s own manufactured semaglutide and liraglutide against compounders. While the firm expects compounding will remain a presence until supply constraints ease it continues to view WW’s move toward compounded GLP-1s as “having more risk than reward” and with WW’s stock up nearly 150% since the company announced its compounded GLP-1 offering, Barclays sees incremental downside risk to shares. The firm reiterates an Underweight rating and 75c price target on WW shares.