Piper Jaffray Remains Positive On CLUB Turnaround

Piper Jaffray reports that it remains positive on Town Sports International's CLUB turnaround and believe execution has made the difference. “Following two years of sales declines during the great recession, we expect low single-digit growth during CY11 and a return to profitability,” Piper Jaffray writes. “We expect updates on member trends, pricing and attrition trends - we believe all are moving in the right direction. “We expect the December quarter outperformed expectations and guidance on CY11 will be a positive surprise. Our take is that estimates for CY11 will move higher and CLUB stock should follow.” Town Sports International closed Tuesday at $4.08.