Nutrisystem (NTRI): Buy Ahead of Earnings - DA Davidson

DA Davidson analyst, Linda Bolton Weiser reiterated her Buy rating on shares of Nutrisystem (NASDAQ: NTRI) and would buy shares ahead of earnings on 2/26. The analyst sees three possible reasons NTRI has traded off by 25% in recent weeks but believes that the company can continue to grow while WTW does as well. She stated "With the stock so weak heading into the report, we think it could have a strong positive reaction, as it did last year, if 1Q18 and 2018 guidance is even modestly ahead of Street expectations".

Key reasons for the selloff:

1) Google Trends data turned negative in 1Q18

2) fears of market share loss to Weight Watchers (WTW), given new CEO Mindy Grossman's strategy unveiling two weeks ago

3) repeat of the usual seasonal trading pattern ahead of the guidance issuance for the all important
diet season in 1Q

No change to the price target of $80.

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

Shares of Nutrisystem closed at $41.55 yesterday.

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