Curator of boutique fitness brand Xponential Fitness, Inc. (XPOF) recently announced the acquisition of Australian fitness franchisor Body Fit Training (BFT) for $ 44 million. Through the acquisition, Xponential acquires the entire intellectual property of Body Fit Training.
Following the news, the company’s shares rose marginally in yesterday’s trading session, closing at $ 13.69.
In particular, Xponential expects that the buyout based on the EBITDA margin will have an immediate positive effect.
After the buyout, Xponential is likely to enter into a master franchise agreement with BFT to support its 130 or so franchise studios in Australia, New Zealand and Singapore, along with 150 previously sold Body Fit studios that are contracted across Asia -Pacific region to open within the next 12 months, the company said. In addition, Xponential Body Fit will directly support studios in the USA and Canada.
Xponential Fitness CEO Anthony Geisler said, “Xponential has a proven track record of seamlessly integrating brands into our platform. BFT is expanding our portfolio of boutique fitness offerings in a way that greatly complements our existing modalities. As with any of our current brands, we will use the Xponential Playbook to provide BFT with solid franchise support and access to best practices to generate synergies across our portfolio. ”(See Top Smart Score Stocks on TipRanks)
Jefferies analyst Randal Konik recently reiterated a buy rating for the stock with a target price of $ 18, implying an upside of 31.5% from current levels.
The consensus among analysts is a strong buy based on 8 unanimous purchases. Xponential Fitness’ average target price of $ 16.69 implies upside potential of 21.9% from current levels.
Xponential Fitness scores 8 out of 10 on TipRanks’ Smart Score system, indicating the stock has strong potential to beat market expectations. The share gained 11.8% in the past year.
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