Jefferies double ups Basic-Fit on valuation, sees issues as 'addressable' in 2024

Basic-Fit

17/01/2024 10:53

** Jefferies double-upgrades Basic Fit  BFIT.AS  to "buy"
from "underperform" as it says the Dutch gym chain's valuation
is now "too low" after sell-off, while its issues are
"addressable" this year
    ** The broker notes the 30% shares fall since April 2023,
but remains confident in the long-run growth potential of the
stock  
    ** Jefferies points to the RSG acquisition in Spain as
looking financially and strategically straightforward, which it
says implies confidence in the trading backdrop
    ** The broker also points to several areas of uncertainty,
which could reverse in 2024
    ** It sees membership cannibalisation from "Premium"
sign-ups now recognised by management, with higher
price/membership restrictions offering feasible remedies
    ** It also sees the COVID openings cohort on track to drive
a 30% ROI, despite the membership lag, but over a longer time
frame 
    ** It expects the slow Germany roll-out to be better
understood as being a similar profile to the France and Spain
roll-out
    ** Out of 10 analysts that cover Basic Fit, eight rate the
stock "strong buy" or "buy"​ and two rate it "hold"

 (Reporting by Clement Martinot)
 ((Clement.martinot@tr.com))