Xponential Fitness initiated with a Sector Weight at KeyBanc

KeyBanc analyst Noah Zatzkin last night initiated coverage of Xponential Fitness (XPOF) with a Sector Weight rating and no price target The firm says strong industry trends and increasing consumer focus on fitness, health and wellness across demographics create a “very favorable backdrop” for the fitness industry. These structural tailwinds are pressured by Xponential’s near-term operational challenges, the analyst tells investors in a research note. KeyBanc believes the company’s moderation in same store sales and the slower conversion of its large franchise backlog creates some uncertainty.