Why WW International Stock Was Bulking Up This Week

What happened

According to data compiled by S&P Global Market Intelligence, veteran dieting services company WW International‘s (WW -10.91%) stock was up by more than 7% week to date as of late Thursday. It wasn’t in slimming mode following share price-boosting comments from its most high-profile figure. 

So what

Media star Oprah Winfrey, who has a seat on WW International’s board of directors, made those comments as a follow-up to remarks she uttered at a recent event. She characterized hotly popular weight-loss drugs such as Novo Nordisk‘s Wegovy as an “easy way out” for dieters.

In a Wall Street Journal article on the company published over the weekend, she said, “My position on the use of prescription medication was misconstrued and taken out of context.” That’s debatable, but at any rate, she added that such drugs are a legitimate and useful option for those looking to shed pounds.

Winfrey’s walk-back meshes with WW International’s recent pivot.

For years, the company — whose foundational asset is the long-standing Weight Watchers system — pushed its members to be disciplined in their food intake and exercise regimes. However, its $106 million acquisition of telehealth company Sequence early this year was the start of a strategic move away from the traditional diet-and-exercise regime to one that includes pharmaceuticals Sequence physicians can prescribe.

Now what

In the wake of the article’s publication, several analysts waxed positive about WW International. DA Davidson’s Linda Bolton Weiser reiterated her buy recommendation on the stock and $12.50 share price target. In Weiser’s view, Winfrey’s apparent clarification “will be viewed very positively” for the company.

That’s not the only bullish development coming down the pike. Weiser’s peer Lauren Schenk at Morgan Stanley (MS -1.38%) pointed out that downloads of the company’s mobile app rose by 17% year over year in its third quarter. Schenk wrote in a new research note that this indicates good momentum in new sign-ups.

Schenk maintained her (somewhat uncomfortably titled) overweight (buy, in other words) recommendation on WW International. She also kept her $13 per share price target intact.