WW International (WW.US) rose nearly 38% on Wednesday to close at $1.60. The company announced it would add compounded semaglutide (semaglutide) to its weight loss programs for $129, expanding access to clinical weight loss interventions for eligible members.
Morgan Stanley said WW International's entry into the GLP-1 field "is not too late." Analyst Nathan Feather said in a client note: "WW International's announcement to add compounded semaglutide to its weight loss programs is a step needed to restart clinical business growth." "We believe WW International can still regain market share, but the execution of the IPO plan is critical as the busy season is rapidly approaching." The analyst rates WW International's stock "Hold." The target price is $1.20.
Analysts said WW International's addition of compounded semaglutide to its weight loss programs helps the company's long-term value in acquiring customers and monetizing about 45% of its members who cannot access the product through insurance. However, the analysts added that the move could bring unique risks, such as a mass customer exodus as the shortage of GLP-1 weight loss drugs is alleviated.