"Online business brought $400 million in revenue. The stock is worth what the online business alone is doing for the company, and we don't think investors have given them credit for that," he says.
An upcoming promotion by famous baskeball star Charles Barkley, intended to attract male customers, may increase the customer base.
Investor reviews are mixed about the 63-year-old company, however. The stock dropped 20 percent since the third-quarter earnings were issued this year, but Boorady says the long-term outlook is good.
Compared to its competitors, Weight Watchers brought in $1.45 billion in revenue, followed by $509 milion from Nutrisystem, and $426 million from Jenny Craig, respectively.
"We're recommending this to investors that can see beyond the first quarter," added Boorady, reasoning that the work employers, the government, and insurers are doing to reduce health-care costs will have a long-term effect on the company's bottom line.
Credit Suisse has an $82 price target on Weight Watchers, which closed trading Wednesday at $57.25.
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Analyst Charles Boorady does not own stock in Weight Watchers. Investment banking clients of Credit Suisse own stock in the company.