Morgan Stanley analyst Nathan Feather downgraded WW to Equal Weight from Overweight with a price target of $1.25, down from $6.50. The firm’s data implies “broad top of funnel issues” which may pressure the company’s subscriber growth and profitability. The growth in obesity medication is a long-term headwind on WW’s core behavioral dieting app business, the analyst tells investors in a research note. Morgan Stanley had been Overweight on the thesis that WW’s competitive advantages in the GLP-1 telehealth space would enable rapid scaling and sustainable, positive free cash flow. However, through Q2, data “has taken a material step back” with app downloads decelerating to negative 16% year-over-year while its clinic web traffic has declined 18% quarter-over-quarter, says the firm.