New York — Gyms are closed, people are trapped indoors and stress eating is on the rise. That could be a future boon for Weight Watchers International as American waistlines expand, according to Morgan Stanley.
More than a decade ago, the stock lost more than half its value over a six-month period, while today the shares have peeled off more than 55% since mid-February. The stock losses during the fiscal crisis turned out to be an “overreaction,” according to Cassel. Not everyone on Wall Street is so optimistic, both Bank of AMerica and Goldman downgraded the stock over the past week. The two banks were concerned about a slowdown in new WW subscribers this year. Cassel concedes that WW is unlikely to meet its first-quarter subscriber forecast “but that appears priced in”, she wrote in her note to clients.