Barclays notes WeightWatchers shares were up 5% this morning after the company announced the introduction of a compounded semaglutide offering, starting at $129, but tells investors that the firm sees “puts and takes” to the announcement. The firm views the compounded GLP-1 offering as a trade-off of near-term survival for mid- to long-term risk, as it believes this extends the cash runway for WW given strong demand for compounded GLP-1s, but views the growth opportunity as being offset by employer channel friction and regulatory risk. The firm, which does not view compounding as a durable business model longer term, reiterates an Underweight rating and 75c price target on WeightWatchers shares.
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