Weight Watchers' stock is going on a diet. Shares of the company, which is now known as WW, plunged 8% Tuesday after two analysts cut their price targets.
JPMorgan's Christina Brathwaite downgraded WW (WTW) to an "underperform" — that's essentially a sell. She cut her price target from $37 to $25, which is more than 10% below its current price.
Brathwaite is worried about reviews for the WW app becoming "increasingly negative" and competition from rival weight-loss services Noom and Diet Doctor.
Oppenheimer's Brian Nagel lowered his target Friday to $40. That's still 40% above where it is trading now, but it's a drastic cut compared to his old target, $98 a share.
Nagel conceded that "investors have increasingly fretted over the potential for waning subscriber growth at the company."
WW is now down more than 25% this year and is 70% below its 52-week high. That's bad news for spokesperson Oprah Winfrey. She owns more than 8% of the shares. Her stake is now worth about $150 million, down from more than $400 million a year ago.