Weight Watchers news about a new price target has WTW stock down on Thursday.
The change in price target for Weight Watchers (NASDAQ:WTW) comes from JPMorgan analyst Christina Brathwaite. This has Brathwaite changing her price target for the stock to $12. The previous price target for WTW stock from this analyst was $14.
A price target drop is obviously bad Weight Watchers news. However, it’s also important to note that the price target of $12 is also below the stock’s current price. WTW stock was sitting at $20.54 when markets closed on Wednesday. This has the new price target sitting at roughly 42% below that price.
The Weight Watchers news also has the JPMorgan analyst holding to their current rating for the stock. This has Brathwaite leaving WTW with an “Underweight” rating. Brathwaite is incredibly bearish when it comes to WTW and her target price is the lowest among analysts, reports MarketWatch.
Brathwaite recent altering of her price target for WTW stock has to do with recent Weight Watchers news. This includes that the company may see a 40% drop in daily average subscribers for the first quarter of 2019 when compared to the same time last year.
Another reason for the lower price target is the possibility that the company will have to make a prepayment on a loan. The loan is $1.50 billion and WTW may have to make the payment due to it surpassing the convent leverage target for it, TheStreet.com notes.
WTW stock was down 11% as of noon Thursday and is down 48% since the start of the year.
More From InvestorPlace
As of this writing, William White did not hold a position in any of the aforementioned securities.
The post Weight Watchers News: WTW Stock Takes a Dive on Price Target Drop appeared first on InvestorPlace.