- Piper Sandler analyst Peter J. Keith reiterated an Overweight rating on the shares of Xponential Fitness Inc XPOF with a price target of $34.
- The analyst said the first fifteen months as publicly traded companies have been remarkably similar for Xponential and Planet Fitness Inc PLNT.
- Keith added that while Xponential shares have been a bit more volatile with the market backdrop, both stocks largely traded in the $15- $20 range.
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- The analyst cited the channel checks and anecdotal observations suggest boutique studio memberships and utilization rates have accelerated in Q3.
- With plenty of opportunity to grow units across its 10 different fitness, Keith sees a 5-year unit growth CAGR of 14%, one of the best in the coverage universe.
- Keith notes franchisees see XPOF as a very well-run organization that is both responsive and provides a solid “recipe” for franchisees to follow to find success.
- Price Action: XPOF shares are trading higher by 3.32% at $18.85 on the last check Wednesday.
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