Piper Sandler cuts target on Xponential Fitness, maintains neutral rating on Investing.com

On Friday, Xponential Fitness Inc (NYSE: XPOF) had its outlook on the stock revised by Piper Sandler, which lowered the price target to $13.00, from the previous target of $14.00. Despite this change, the firm maintained a neutral rating on the stock.

The change comes after Xponential Fitness missed its second quarter earnings and a subsequent review of its guidance. An analyst from Piper Sandler noted that the company’s recent problems show that it has not been caught up in the economic problems affecting the market. In addition, the company is still dealing with the problem of early performance problems.

The analyst acknowledged that Xponential Fitness is taking serious steps to improve its position. Efforts such as improved product management, introduction of new leadership, and efforts to strengthen franchisee relationships were noted.

However, these efforts have not yet fully borne fruit, as the company’s progress is being overshadowed by the broader macroeconomic environment.

Meanwhile, Evercore ISI maintained a positive rating on the company, emphasizing the strong character of the new CEO, with a price target of $35.00. Similarly, Roth/MKM initiated coverage on Xponential Fitness, assigning a Buy rating with a price target of $22.00, indicating confidence in the company’s growth and financial outlook.

However, Baird reduced the company’s price target from $14 to $10, maintaining a neutral rating due to uncertainty including the resignation of the CEO. and ongoing investigations by administrative authorities. Lake Street Capital Markets also lowered its price target to $23 from $32, despite the company’s consistent performance to meet or exceed earnings estimates.

InvestingPro Insights

As Xponential Fitness Inc (NYSE: XPOF ) navigates its recent challenges, there are several key metrics and data from InvestingPro that investors may find valuable. The company has shown an impressive profit margin of 69.61% in the last twelve months from Q1 2024, which shows strong performance. Additionally, XPOF trades at a low multiple, with a P/E ratio of 7.48, suggesting that the stock may be undervalued based on its earnings potential.

The stock has also shown resilience with a strong return over the past three months, posting an average price gain of 26.81%, and an even more impressive six-month gain of 52.74%. These numbers highlight the company’s recent market performance and can be an indication of investor confidence in its growth potential. It is also important to note that analysts predict that Xponential Fitness will be profitable this year, which could be a turning point for the company.

For investors looking for a more in-depth analysis, there are additional InvestingPro Tips available. These include information on the purchase of shares by the management, the volatility of the stock price, and the profit of the company in the last twelve months. To further explore these tips and more, investors can refer to the InvestingPro platform, which offers 9 expert tips for XPOF.

While Piper Sandler has maintained a neutral stance on XPOF, InvestingPro’s data and information provide a broader view of the company’s financial health and market performance. As always, investors are encouraged to do their own research and consider multiple sources of information when making investment decisions.

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