DA Davidson analyst Linda Bolton Weiser says WW (WW), LifeMD (LFMD), Hims & Hers (HIMS), Medifast (MED), Herbalife (HLF) and Nu Skin (NUS) traded lower after Eli Lilly (LLY) announced LillyDirect, a digital health service enabling patients to get home delivery of select Lilly drugs, including the GLP-1 weight loss drugs Mounjaro and Zepbound. Lilly’s telehealth platform should have an advantage over competitors in the near-term as its patients will have ready access to the drugs, the analyst tells investors in a research note. However, longer term, the firm thinks WW, which it calls the weight loss “category killer,” can be more effective than Lilly in overseeing patients, which includes behavior modification. Davidson believes Weight Watchers is the strongest brand equity in weight loss. It keeps a Buy rating on WW with a $12.50 price target.
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