Auriga Starts Weight Watchers (WTW) at Buy; Lower Price Is Something To Chew On
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Price: $265.17 +0.25%
Rating Summary:
9 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
Rating Summary:
9 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
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Auriga initiates coverage on Weight Watchers (NYSE: WTW) with a Buy. PT $71.00.
Auriga analyst says, "WTW performed strongly this year, benefitting from the introduction of its New PointsPlus plan, its first new plan in a dozen years. With the new plan as well as its successful marketing campaign, change in pricing options, and exploitation of new sales channels, we believe the company can continue to perform well. Earlier this year, Weight Watcher shares jumped on the strong performance, more than doubling from a beginning of the year price near $38. However, shares have retreated to more a reasonable price which we consider to be a good entry point for investors given the potential for multiyear growth. Our $71 price target is based on a 15.5x multiple of its 2012 earnings, which is roughly its average forward P/E over the past year, as well as a discounted cash flow analysis of Weight Watcher's expected cash flows over the next few years and assigning a 10.0x terminal multiple."
For more ratings news on Weight Watchers click here and for the rating history of Weight Watchers click here.
Shares of Weight Watchers closed at $56.99 yesterday.
Auriga analyst says, "WTW performed strongly this year, benefitting from the introduction of its New PointsPlus plan, its first new plan in a dozen years. With the new plan as well as its successful marketing campaign, change in pricing options, and exploitation of new sales channels, we believe the company can continue to perform well. Earlier this year, Weight Watcher shares jumped on the strong performance, more than doubling from a beginning of the year price near $38. However, shares have retreated to more a reasonable price which we consider to be a good entry point for investors given the potential for multiyear growth. Our $71 price target is based on a 15.5x multiple of its 2012 earnings, which is roughly its average forward P/E over the past year, as well as a discounted cash flow analysis of Weight Watcher's expected cash flows over the next few years and assigning a 10.0x terminal multiple."
For more ratings news on Weight Watchers click here and for the rating history of Weight Watchers click here.
Shares of Weight Watchers closed at $56.99 yesterday.
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