Shares of Weight Watchers International (WW) gained nearly 3% on Tuesday after the stock was upgraded to buy from hold at Craig-Hallum Capital.
Analyst Alex Fuhrman cited improved trends for the Oprah Winfrey-supported company, which recently rebranded as WW to reflect a focus on health and wellness instead of just weight loss. Winfrey owns around 8% of Weight Watchers International and is a key spokesperson.
The stock jumped earlier this month after the company raised its full-year profit guidance driven by a new marketing campaign that helped push its membership to a second-quarter record of 4.6 million.
CEO Mindy Grossman also told investors last week the company's celebrity ambassador roster "continues to grow and diversify."
The stock has been coming back from its 52-week low of $16.71 reached in May but is still well below its 52-week high of $80.30 a year ago.
The company recently launched its Kurbo app to help kids and teens ages 8 to 17 "reach a healthier weight." An online petition was launched calling on WW to remove the app, calling dieting during childhood and adolescence "dangerous and strongly increases the risk of eating disorders, lifelong weight struggles and disordered eating."
The stock rose 2.67% to $29.65 on Tuesday.
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