CS starts Basic Fit with 'outperform' on expanding customer base

Basic-Fit

06/04/2022 09:25

** Credit Suisse initiates Basic Fit  BFIT.AS  at
"outperform" and a PT of EUR 50, saying that the Dutch discount
gym chain's growing average revenue per user is supporting
strong recurring revenue streams 
    ** The broker says Basic Fit's established brand, scale and 
price leadership, and unified low-cost model should allow it to
quickly return to pre-pandemic mature club performance
    ** CS expects Basic Fit's club capacity to more than double
- growing from 1,015 facilities in 2021 to 2,254 in 2026 - and
its membership data to improve with a higher share of mature
clubs and premium customers
    ** With scale and profitability ramped up, CS forecasts a
40% top line in 2021-2026 CAGR and a 4x underlying EBITDA growth
by 2026 from 2019 levels
    ** It estimates a EUR 15 bln ($16.3 bln) direct addressable
market in Basic Fit's current six target countries, expecting
Basic Fit to reach 11%-12% market share in its current total
addressable market by 2026
    ** Out of 10 analysts, seven rate Basic Fit "strong buy/buy"
and ​three "hold" 



($1 = 0.9181 euros)

 (Reporting by Elena Vardon)
 ((elena.vardon@tr.com))