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Raised EBITDA Outlook and Operational Momentum Support Buy Rating Despite EPS Headwinds

Raised EBITDA Outlook and Operational Momentum Support Buy Rating Despite EPS Headwinds

Jefferies analyst James Wheatcroft has maintained their bullish stance on GYM stock, giving a Buy rating on March 24.

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James Wheatcroft has given his Buy rating due to a combination of factors that point to a solid earnings outlook and operational momentum. He has raised EBITDA forecasts meaningfully for the 2026–2028 period, with his 2026 projection essentially matching the company’s own guidance, which underpins confidence in the profitability trajectory despite some headwinds.

At the same time, he acknowledges that EPS expectations are lower because of increased share-based compensation, interest costs and tax, but views these as manageable within the broader growth story. The most recent full‑year results showed EBITDA beating market expectations, strong year‑on‑year profit growth and higher revenue supported by rising membership levels, all of which reinforce his positive stance on the shares.

In another report released on March 24, TipRanks – Google also reiterated a Buy rating on the stock with a p182.00 price target.

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