Weight Watchers International Inc.’s stock surged 8.6% in morning trade, after Morgan Stanley upgraded the weight management services company, citing valuation. Analyst Dara Mohsenian raised his rating to equal weight from underweight, while keeping his stock price target at $6, which is 3.2% below current levels. While Mohsenian considers the fundamental outlook to be “weak,” given declining attendance trends and intense competition, he believes the stock now appropriately reflects that outlook following the recent underperformance. The stock has soared 55% so far this month, boosted by better-than-expected second-quarter earnings and a raised full-year outlook, but was still down 75% year to date, while the S&P 500 has gained 0.8%.
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