UBS says WW’s (WW +18.1%) Q2 update highlights the success the company had in shifting to an all-digital format.
Analyst Michael Lasser: “On the back of
accelerating digital trends, global recruitment inflected positive in
May. This is probably due to several tailwinds. First, we believe a
global pandemic has brought health to the forefront of consumers’ minds.
Second, govt stimulus has left many consumers with elevated levels of
discretionary income.”
Lasser thinks more shelter-in-place orders could
create less competition for the attention and money of consumers to
presents a unique opportunity for digital services such as WW, but warns
on the loss of the studio business.
WW is rated at Neutral on what UBS sees as a balanced risk/reward profile. The price target is lifted to $28.
Previously: WW +10.7% as it notes subscriber growth of 7% (June 15)
https://seekingalpha.com/news/3583521-powerful-rally-for-ww-after-digital-business-impresses
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