How Oprah Could Push Weight Watchers' Stock To $19

• Shares of Weight Watchers International, Inc. (NYSE: WTW) surged higher by more than 100 percent on Monday after Oprah Winfrey announced she acquired a 10 percent stake.
• Meredith Adler of Barclays commented in a note that a partnership with Oprah is likely to "speed up considerably" the process of re-introducing the program to consumers.
• Adler upgraded the stock to Equal-Weight from Underweight with a price target raised to $14 (with upside to $19) from a previous $5.

As part of the partnership, Winfrey acquired a 10 percent stake of the company (with the option to acquire an additional 5 percent) and has been granted a seat on the company's Board of Directors.

In a report published Tuesday, Meredith Adler of Barclays noted that the partnership confirms her view that the Weight Watchers brand has value, but she was "not creative enough" to foresee such a partnership being forged.

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Adler said Weight Watchers' management has previously undergone a change in its program to a more health and fitness theme. As such, the analyst suggested that a partnership with Winfrey is "likely to speed up considerably" the process of re-introducing the "revised" Weight Watchers program to consumers given her "tremendous consumer recognition" and "influence."

However, Adler pointed out that a lack of information about the planned program changes keeps her "cautious" on upside in earnings. Nevertheless, Winfrey's contribution to the marketing of Weight Watchers is "necessary" for the company's success.

Shares were upgraded to Equal-Weight from Underweight with a price target raised to $14 from a previous $5. Under an upside scenario in which Winfrey's involvement helps drive a better-than-expected recruitment and revenue stream, shares could be valued at $19.