Xponential Fitness is tipped by Evercore ISI to be a boutique fitness growth machine also a Best Idea at gummybear advisors-
Mar. 15, 2022 7:34 AM ET Xponential Fitness, Inc. (XPOF)
Xponential Fitness(NYSE:XPOF)is on watch on Tuesday after the fitness brand company attracted an Outperform rating from Evercore ISIin new coverage.
Evercore ISI said it views boutique fitness as an underappreciated, untapped frontier for franchise consolidation, and Xponential Fitness is noted to be positioned to lead a potentially multi-decade franchise consolidation and boom cycle.
"Our proprietary analysis found that contrary to store-rollout 101, XPOF’s independent (‘mom-and-pop’)-led franchise model is actually much heavier on small suburban markets, which shows 1) XPOF’s best-in-class franchisee economics work anywhere and 2) AUV will likely NOT dilute over time… even over the next few thousand stores (XPOF offers 10 diversified banners… and counting). XPOF’s low opening costs, 2.5yr payback period and attractive 4-wall margins are allowing XPOF to systematically turn boutique fitness enthusiasm into member, unit and sales growth."
Analyst Warren Cheng and team said all the growth for XPOF is much less risky than the market realizes. XPOF is called more of a bet on boutique fitness than on any single modality. XPOF is seen closing its multiple gap vs. the restaurant franchisor peer group, while also delivering 15% to 20% upside to 2023 EBITDA estimates.
Mar. 15, 2022 7:34 AM ET Xponential Fitness, Inc. (XPOF)
Xponential Fitness(NYSE:XPOF)is on watch on Tuesday after the fitness brand company attracted an Outperform rating from Evercore ISIin new coverage.
Evercore ISI said it views boutique fitness as an underappreciated, untapped frontier for franchise consolidation, and Xponential Fitness is noted to be positioned to lead a potentially multi-decade franchise consolidation and boom cycle.
"Our proprietary analysis found that contrary to store-rollout 101, XPOF’s independent (‘mom-and-pop’)-led franchise model is actually much heavier on small suburban markets, which shows 1) XPOF’s best-in-class franchisee economics work anywhere and 2) AUV will likely NOT dilute over time… even over the next few thousand stores (XPOF offers 10 diversified banners… and counting). XPOF’s low opening costs, 2.5yr payback period and attractive 4-wall margins are allowing XPOF to systematically turn boutique fitness enthusiasm into member, unit and sales growth."
Analyst Warren Cheng and team said all the growth for XPOF is much less risky than the market realizes. XPOF is called more of a bet on boutique fitness than on any single modality. XPOF is seen closing its multiple gap vs. the restaurant franchisor peer group, while also delivering 15% to 20% upside to 2023 EBITDA estimates.
