Xponential Fitness cut to Neutral at Roth Capital on comp pressure

Roth Capital analyst George Kelly downgraded Xponential Fitness (XPOF) to Neutral from Buy with a price target of $7, down from $10, after its Q4 results last night. The firm maintains that Club Pilates is worth more than the company’s enterprise value but also cites weakening comps, poor free cash flow conversion, and significant balance sheet leverage, the analyst tells investors in a research note. Roth adds that its sees limited near-term upside for Xponential Fitness shares.