Xponential Fitness just upgraded at Stifel, here’s why

Stifel analyst Chris O’Cull upgraded Xponential Fitness to Buy from Hold with an unchanged price target of $18. The stock is down 33% during the past week following a negative Bloomberg article and an 8-K filing stating the SEC has requested that the company provide it with certain documents, the analyst tells investors in a research note. The firm believes the reaction “is a classic example of shooting first and asking questions later.” Stifel says Xponential’s highly franchised business’s valuation reflects overly negative short-term sentiment rather than significant fundamental issues. And, if shares were to languish long at the current level, management could roll their equity and partner with another investor to take the company private, contends the firm. It likes the stock’s current risk/reward.