Auriga Reiterates a 'Buy' on Weight Watchers (WTW); Raising Numbers on Expected Sustained Growth from PointsPlus

Auriga reiterates a 'Buy' on Weight Watchers (NYSE: WTW) price target raised from $75 to $87.

Auriga analyst said, "We are increasing our price target as we incorporate our 2013 EPS estimate of $5.41. We are also increasing our valuation multiple to 16x from 15.5x, based on our expectation that the company's growth will continue due to the success of its PointsPlus program. Thus far in 2012, we believe that WTW's marketing campaign has successfully generated brand interest, as demonstrated by increased internet traffic. We are pleased with the advertising campaigns of Jennifer Hudson and Charles Barkley as well as the Dr. Oz Transformation Nation weight loss challenge, and believe Weight Watchers received significant attention in various media markets. We continue to expect Weight Watchers to grow in 2012, partially through price increases implemented late last year as well as from higher attendance and internet revenue. We reiterate our recommendation on Weight Watchers, which remains arguably Best in Class among commercial weight loss peers."

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

Shares of Weight Watchers closed at $76.69 yesterday.

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