Membership Collective initiated with a Buy at Roth Capital

Roth Capital analyst George Kell initiated coverage of Membership Collective, owner of the iconic brand/venue Soho House, with a Buy rating and $7 price target. Since coming public in July 2021 at $14, shares have fallen nearly 65% on concerns regarding profitability and leverage, the analyst notes. Kelly believes conditions and sentiment are about to improve. New management appears keenly focused on profitability, and leverage is elevated but manageable, in his view. As turnaround efforts show traction, the analyst believes this unique asset/brand will quickly re-rate.