Weight Watchers

Shares of Weight Watchers (WW - Get Report) are rising 5.7% to $23.08 Thursday after analysts at JPMorgan came up off of their bearish view, upgrading the stock to neutral from underweight. 

Analyst Christina Brathwaite sees stabilizing subscriber growth trends, leading her to increase her price target to $22 from $17 a share. The new price target is about even with the company's previous closing price of $21.84. 

"We believe that steps taken to redirect the marketing message to dieting have worked to stabilize recruitment trends," Brathwaite wrote. "We believe investors are beginning to look past the expected ~50% earnings decline this year and instead focus on the potential growth opportunity in 2020 following the launch of a new diet program at the end of this year."

Before Thursday's rally, Weight Watchers shares had dipped 50%. In spite of the more upbeat outlook, JPMorgan sees stock volatility ahead for the company. 

"Although risk/reward is more balanced now, in our view, the stock will likely remain volatile and investors should remain on the sidelines until more clarity is provided around the planned changes of the diet program in order to assess how compelling it will be to potential subscribers," Brathwaite wrote.