Baird downgrades Xponential Fitness to Neutral after rally

As previously reported, Baird analyst Jonathan Komp downgraded Xponential Fitness to Neutral from Outperform with an unchanged price target of $34. The firm is further reducing exposure to the active lifestyles consumer and retail group by downgrading a trio of what it calls "high-quality stocks" following their sharp year-to-date gains. The firm has maintained a cautious group view given prospective macroeconomic risks and with these stocks up 36%-89% year-to-date the firm is stepping aside and will look to revisit over time or if presented with pullbacks tied to group sentiment, which could be pressured if slower consumer spending continues beyond March.