Weight Watchers International, Inc. (NYSE:WTW) stock was soaring Tuesday as the company received an upgrade from analysts at a major financial institution.
The diet services provider was gaining as JPMorgan Chase & Co. (NYSE:JPM) released a note that upgraded the stock, adding it into its list of “overweight” stocks. The firm said that the weight loss company is on track for “outsized” growth as it is seeking to add more big-name celebrities through its partnership with Oprah Winfrey, who has helped fuel the company’s turnaround efforts in the last couple of years.
“Management stabilized the trajectory … by revamping its points program, significantly improving the mobile platform, and recruiting pivotal social media influencers,” J.P. Morgan analyst Christina Brathwaite wrote in a note.
“Winfrey is and will continue to be a key advertising partner [as the company expands] by broadening its social media influencer base,” Brathwaite added. The analyst also said that that Weight Watchers has made some lucrative moves this year in adding more sponsors, who have come on board after Oprah Winfrey’s decision to fully vouch for the company.
This year alone, the company has signed record producer DJ Khaled, chef Eric Greenspan, comedian Kevin Smith and singer Hélène Ségara, who are all influencers for the brand.
WTW stock was up about 6.2% Tuesday on the news, while JPM shares is down 0.6%.