Xponential Fitness price target raised to $8 from $7 at Roth Capital

Roth Capital analyst George Kelly raised the firm’s price target on Xponential Fitness (XPOF) to $8 from $7 and keeps a Neutral rating on the shares. The company has announced that its board initiated a strategic review process that could include a sale, merger, or another strategic/financial transaction, and the firm believes that a sale is the most likely outcome, the analyst tells investors in a research note. Roth adds that performance has been weak/messy since mid-2023, with executive departures, brand divestitures, regulatory investigations, inconsistent comps, and elevated one-time costs, and while progress has been made resolving various investigations and lawsuits, some remain unresolved.