Citi analyst James Hardiman has maintained their bullish stance on XPOF stock, giving a Buy rating on March 1.
James Hardiman has given his Buy rating due to a combination of factors, including the strong revenue growth and the potential for continued recovery of Xponential Fitness’s stock. Hardiman acknowledges that while the company’s adjusted EBITDA guidance fell slightly short of expectations due to higher than anticipated SG&A expenses, this was offset by robust sales performance in non-membership-related revenue streams. The firm’s management also provided positive commentary on the recent Lindora acquisition and Average Unit Volumes (AUVs), reinforcing confidence in the company’s performance.
Despite a margin that did not meet the predicted figures, largely due to a slower pace in reducing transition studio costs, Hardiman sees the recent uptick in XPOF’s share price as a sign of resilience and the potential for additional gains. He notes that the substantial drop in XPOF’s stock price following the Fuzzy Panda report and subsequent business viability concerns presents an opportunity for a rebound. With the company’s management expecting to reach a 40% adjusted EBITDA margin by 2024 and maintaining their FY26 targets, Hardiman’s outlook remains optimistic, albeit with a slightly reduced price target that reflects the increased SG&A assumptions.
In another report released on March 1, Morgan Stanley also maintained a Buy rating on the stock with a $25.00 price target.
XPOF’s price has also changed moderately for the past six months – from $22.280 to $14.050, which is a -36.94% drop .
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Xponential Fitness (XPOF) Company Description:
Xponential Fitness Inc is a curator of leading boutique fitness brands. Its diversified portfolio of brands includes Club Pilates; CycleBar-indoor cycling brand; StretchLab-one-on-one and group stretching services; Row House, a high-energy, low-impact indoor rowing workout; AKT, a dance-based cardio workout combining toning, interval and circuit training; YogaSix; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements; STRIDE, a treadmill-based cardio and strength training concept; and Rumble, a boxing-inspired full-body workout.
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