Xponential Fitness shares flop as BofA downgrades, slashes PT

Xponential Fitness

01/11/2023 14:03

** Shares of Xponential Fitness  XPOF.N  down 15.2% at
$12.10, after hitting lowest levels since Jun 2022, as BofA
Global Research downgrades to "neutral" from "buy"
    ** BofA slashes PT from $35 to Street-low $16, LSEG data
showed
    ** Risk/reward now more balanced given estimate many
franchisees across Pure Barre, Row House, AKT, and Stride that
required financing may not be profitable, BofA analyst Alexander
Perry says in client note
    ** Perry says he's modeling C24-C26E EBITDA below co
guidance and consensus as less profitable units close and as
XPOF moves closer to full penetration of scaled brands including
Club Pilates and StretchLab
    ** Now, 10 of 13 analysts rate stock "buy" or "strong buy",
rest "hold"; median PT of $30 down from $39.50 on Aug 1 - LSEG
    ** XPOF's stock plunged about 37% on Jun 27 after
short-seller attack by Fuzzy Panda Research, which claimed co
was hiding that its brands and franchisees were struggling
    ** With move on Weds, XPOF shares down ~47% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))