WW acquisition of Sequence a ‘game changer’, says DA Davidson

DA Davidson analyst Linda Bolton Weiser keeps a Buy rating and $9.00 price target on WW while noting that the company’s acquisition of Sequence and ability to offer scripts for Wegovy is a "game-changer". Over 70% of WW members are obese and possible drug candidates, and if the company trades up just 10% of its obese North America subs to $99 monthly drug maintenance, it could add over 50% to North America sales, the analyst tells investors in a research note. The firm further cites Google searches for Weight Watchers in the first 3 months of the year that were "flat or up Y/Y" in 5 of the last 8 weeks after a long period of decline.