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Fly News Breaks for February 28, 2018
NTRI
Feb 28, 2018 | 06:19 EDT
DA Davidson analyst Linda Bolton Weiser slashed her price target on Nutrisystem to $40 after a Q4 earnings miss and soft guidance for Q1 and FY18. The analyst attributes the disappointing near-term forecast to a "less effective than planned" TV advertising campaign, compounded by the marketing costs paid upfront rather than scattered. Despite the miss, the analyst is positive on South Beach diet sales, forecasting a better than expected 150% increase in 2018 which should allow Nutrisystems to post a 1% rise in overall revenue for the year. Weiser keeps her Buy rating on the stock, anticipating a more meaningful growth in sales and earnings in FY19.
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