UPDATE: Goldman Sachs Downgrades Weight Watchers International (WW) to Neutral on Economic Uncertainty

(Updated - March 26, 2020 5:30 AM EDT)

(updating comment)

Goldman Sachs analyst Jason English downgraded Weight Watchers International (NASDAQ: WW) from Buy to Neutral with a price target of $18.00 (from $48.00).

The analyst comments "We now expect FY20/FY21/FY22 subscriber growth to be -1%/+3%/+4% compared to our previous forecast for +15%/+7%/+6%. We assume Studio member growth turns negative in FY20 given the likely durability of people’s fear to congregate in crowds; meanwhile we cut our Digital Only member growth in FY20 to +MSD as we assume people tighten their spending during a recession. Given the bleak macro-economic backdrop over the next 12 months, combined with the lack of visibility into WW’s new news for the 2021 Winter recruitment we prefer to take a more cautious stance on subscriber growth in 2021 and 2022 for now."

For an analyst ratings summary and ratings history on Weight Watchers International click here. For more ratings news on Weight Watchers International click here.

Shares of Weight Watchers International closed at $17.16 yesterday.

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