Piper Sandler Believes Xponential Fitness Is Poised For Solid Growth

Piper Sandler analyst Peter J. Keith reiterated an Overweight rating on the shares of Xponential Fitness Inc XPOF with a price target of $34.
The analyst said the first fifteen months as publicly traded companies have been remarkably similar for Xponential and Planet Fitness Inc PLNT.
Keith added that while Xponential shares have been a bit more volatile with the market backdrop, both stocks largely traded in the $15- $20 range.
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The analyst cited the channel checks and anecdotal observations suggest boutique studio memberships and utilization rates have accelerated in Q3.
With plenty of opportunity to grow units across its 10 different fitness, Keith sees a 5-year unit growth CAGR of 14%, one of the best in the coverage universe.
Keith notes franchisees see XPOF as a very well-run organization that is both responsive and provides a solid “recipe” for franchisees to follow to find success.
Price Action: XPOF shares are trading higher by 3.32% at $18.85 on the last check Wednesday.

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