Davidson says Oprah panel legitimized drug treatment for obesity

DA Davidson analyst Linda Bolton Weiser reiterates a Buy rating on WW with a $12.50 price target after Oprah Winfrey hosted 50-minute panel discussion with three renowned obesity doctors and WW’s CEO Sima Sistani. The analyst thinks the media is skewing Oprah’s message to be “anti-drug,” saying the panel legitimized drug treatment. The tone conveyed that obesity is a disease, no one should be shamed for the methods they choose to get healthy, and we’re at an inflection point in understanding obesity, the analyst tells investors in a research note. The firm says WW’s CEO promised “a more nuanced, harder conversation with our customers about where our program works and where it doesn’t.” Davidson thinks there was only one part of the discussion where the tone was a bit negative toward WW — one heavyset audience member said she lost 100 pounds on Weight Watchers in college and gained it all back, and asked what the CEO is doing to make the program better.