Jefferies analyst James Wheatcroft maintained a Buy rating on The Gym (GYM – Research Report) today and set a price target of p180.00.
James Wheatcroft has given his Buy rating due to a combination of factors that reflect positive adjustments in The Gym’s financial outlook. The updated model shows a slight increase in EBITDA, which aligns with the top end of the consensus range, indicating stronger operational performance than previously anticipated.
Additionally, while revenue projections remain relatively flat, there is a significant expected increase in earnings per share (EPS) due to changes in interest and tax assumptions, particularly a zero tax charge in FY25E resulting from past losses. These financial adjustments, combined with a stable DCF-based price target of 180p, support the Buy rating as they suggest potential for improved profitability and shareholder value.
According to TipRanks, Wheatcroft is a 3-star analyst with an average return of 2.3% and a 37.74% success rate.