Analyst Owen Rickert from Northland Securities maintained a Hold rating on Xponential Fitness and keeping the price target at $10.00.
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Owen Rickert has given his Hold rating due to a combination of factors influencing Xponential Fitness’s current position. The company is undergoing a strategic transformation under new leadership, focusing on streamlining operations and enhancing efficiencies. This includes a shift towards higher-performing brands and a reduction in corporate headcount, which are positive steps towards improving the business model.
Despite these efforts, the company is still in the early stages of its turnaround strategy, and challenges remain, such as addressing lease obligations and regulatory issues. Additionally, while StretchLab is facing some difficulties, it continues to contribute positively to the company’s financials, indicating mixed performance across the portfolio. The recent refinancing of debt to a new five-year term loan is a strategic move to reduce interest payments and eliminate convertible preferred stock, but the full impact of these changes is yet to be realized, justifying the Hold rating.
In another report released on December 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.00 price target.