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Xponential Fitness: Buy Rating Affirmed Amid SEC Resolution and Growth Potential

Xponential Fitness: Buy Rating Affirmed Amid SEC Resolution and Growth Potential

Xponential Fitness, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst John Heinbockel from Guggenheim maintained a Buy rating on the stock and has a $13.00 price target.

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John Heinbockel has given his Buy rating due to a combination of factors related to Xponential Fitness’s recent developments and future potential. The closure of the SEC investigation marks a significant step towards stabilizing the company’s operations and financial standing, which had been under a period of uncertainty. This resolution has led to a notable 25% increase in after-hours trading, highlighting investor confidence despite the stock still being below the price target of $13.
Heinbockel maintains a conservative price target, reflecting a valuation of 9.3 times the estimated 2026 EBITDA and a PEG ratio below 1.0. Furthermore, the potential application of a 15x multiple to the Club Pilates business suggests a possible equity value exceeding $1 billion, or $22 per share, which is more than double the current price. These factors collectively underpin the Buy rating, as the company is poised for further strategic advancements.

According to TipRanks, Heinbockel is a 4-star analyst with an average return of 9.8% and a 63.03% success rate. Heinbockel covers the Consumer Cyclical sector, focusing on stocks such as Life Time Group Holdings, Dollar Tree, and Dollar General.

In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $26.00 price target.

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