UPDATE: Piper Jaffray Reiterates Overweight Rating, Lowers PT on Town Sports International on Challenging Consumer Environment

In a report published Wednesday, Piper Jaffray reiterated its Overweight rating on Town Sports International Holdings CLUB, but slightly lowered its price target from $14.00 to $13.00. Piper Jaffray noted, “Last night, CLUB reported FQ4 earnings of $0.16, excluding one-time items, which was in-line with our estimate but $0.01 ahead of consensus. Importantly, the company noted membership trends weakened in the second half of January and issued FQ1 guidance of $0.15-$0.17 which came in below the consensus estimate of $0.20 and our $0.19 estimate. Overall, while we are concerned about the challenging consumer environment and the potential impact to new membership additions, we believe investments in FY13 will materialize in FY14 in the form of accelerated earnings growth.” Town Sports International Holdings closed on Tuesday at $10.89.