Xponential Fitness jumps as Stifel upgrades to "buy" after stock's selloff

Xponential Fitness

13/12/2023 14:25

** Shares of Xponential Fitness  XPOF.N  up 7.6% at $9.92
premarket after Stifel raises rating to "buy" from "neutral",
saying it likes current risk/reward
    ** Stifel sets PT at $18, nearly double stock's prior close
    ** XPOF shares have fallen ~33% over the past week and hit
record low after co said it received SEC request for certain
documents, and amid Bloomberg report saying co misled individual
investors about the financial strength of its franchisees
    ** "We believe the reaction is a classic example of shooting
first and asking questions later," Stifel says in note regarding
stock's selloff
    ** Highly franchised business's valuation (~6x EV/EBITDA
NTM) reflects overly negative short term sentiment rather than
significant fundamental issues, Stifel says
    ** If shares languish long at current level, Stifel says it
would not be surprised if management rolled their equity and
partnered with another investor to take the co private
    ** Avg rating among 13 analysts is "buy" and median PT is
$27, per LSEG data
    ** Stock has shed 60% YTD through Tues close

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))