The Gym Group (GYM)

Sector:

Tourism and Leisure Services

Index:

FTSE Small Cap

278.00p
   
  • Change Today:
    -2.00p
  • 52 Week High: 313.00
  • 52 Week Low: 120.00
  • Currency: UK Pounds
  • Shares Issued: 177.56m
  • Volume: 141,850
  • Market Cap: £493.62m
  • RiskGrade: 80

Recovery in membership could lift Gym Group to 400.0p, Barclays says

By Alexander Bueso

Date: Tuesday 02 Jun 2020

LONDON (ShareCast) - (Sharecast News) - Analysts at Barclays reinstated coverage of Gym Group with a recommendation to 'overweight', highlighting to clients the group's gearing to a recovery.
They said that club membership was the key metric to watch, estimating that at 86% of its February 2020 level, before the Covid-19 pandemic hit that is, the company would be break even.

On their assumption of £10m a month in fixed costs the company's gearing was "extremely high", they explained, with a 5% change in membership lifting, or dropping, the shares' 'fair value' by 30%.

Yet while the investment case was high risk, "on balance" the risk-reward profile was now "sufficiently attractive", they added.

They anticipated that membership would return to 90% of its pre-Covid level in the 2022 financial year, resulting in their 220.0 target price for the stock

In a bullish scenario, membership could fully recover by then, lifting the stock even further, to 400.0p

To the downside, the risk was that membership would only be at 75%, which on EV/EBITDA multiple of eight would imply a drop in the share price to 45.0p.



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

The Gym Group Market Data

Currency UK Pounds
Share Price 278.00p
Change Today -2.00p
% Change -0.71 %
52 Week High 313.00
52 Week Low 120.00
Volume 141,850
Shares Issued 177.56m
Market Cap £493.62m
RiskGrade 80

The Gym Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
60.05% below the market average60.05% below the market average60.05% below the market average60.05% below the market average60.05% below the market average
47.69% below the sector average47.69% below the sector average47.69% below the sector average47.69% below the sector average47.69% below the sector average
Price Trend
66.11% above the market average66.11% above the market average66.11% above the market average66.11% above the market average66.11% above the market average
80.56% above the sector average80.56% above the sector average80.56% above the sector average80.56% above the sector average80.56% above the sector average
Income
60.09% below the market average60.09% below the market average60.09% below the market average60.09% below the market average60.09% below the market average
73.33% below the sector average73.33% below the sector average73.33% below the sector average73.33% below the sector average73.33% below the sector average
Growth
26.21% below the market average26.21% below the market average26.21% below the market average26.21% below the market average26.21% below the market average
37.31% above the sector average37.31% above the sector average37.31% above the sector average37.31% above the sector average37.31% above the sector average

What The Brokers Say

Strong Buy 6
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 7
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

The Gym Group Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 23-May-19
Paid 11-Oct-19 14-Jun-19
Amount 0.45p 0.95p

Trades for 29-Jul-2021

Time Volume / Share Price
17:06 5,000 @ 278.00p
16:35 36,284 @ 278.00p
16:29 507 @ 277.00p
16:29 43 @ 278.00p
16:29 23 @ 278.00p

The Gym Group Key Personnel

Chair Penny Hughes
CEO Richard Darwin
CFO Mark George

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