Xponential short report ‘distortion of facts and data,’ says B. Riley

B. Riley says the Xponential Fitness short report “was largely a distortion of facts and data.” There are no covenants related to store closures since Xponential paid off the Cerberus debt, writes the analyst, who does not anticipate a material change in business trends to be reflected in the company’s Q2 metrics. The firm believes Xponential’s operating studios and new studio openings remain on track, and the financial condition of franchisees remains solid. The lower stock price suggests a more attractive risk/reward profile and represents an opportunity, the analyst tells investors in a research note. The firm reiterates a Buy rating on Xponential Fitness with a $46 price target.