Viva Leisure's short-term membership model to have 'adverse' impact - Citi

Viva Leisure

25/05/2022 22:23

** Citi, while analyzing conditions of weaker consumer
demand, says Australian health club operator  VVA.AX  could be
"adversely" impacted during challenging economic conditions
    ** Adds that this impact could potentially occur reasonably
quickly given VVA's short-term membership model
    ** However, increased consumer health awareness following
the pandemic could result in more people keeping their
memberships compared to previous downturns, somewhat offsetting
challenges - Citi
    ** Nevertheless, Citi says their analysis suggests that
VVA's membership growth has likely continued in H2, suggesting
that the business continues to trade well for now
    ** All 3 analysts covering the stock rate it "buy" or
higher; their median PT is A$3.00 – Refinitiv data
    ** Stock has fallen by over a quarter this year

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))