However, last Friday, YOGA rebounded in a big way, spiking higher by 15%, ahead of today's quiet period expiration as traders anticipated some bullish initiations following the stock's fall. And indeed, analysts were positive on YOGA as the risk-reward has improved since its IPO.
Specifically, Cowen initiated it with an Outperform and $7 target, while Roth Capital and Guggenheim both initiated with Buy's and $7 targets as well. Even with Friday's surge higher, that $7 price target is a good 75% higher from current prices.
For some background on the company, YOGA is exactly what it's name implies: a provider of yoga instruction in the U.S. It is one of the largest operators with nearly 3.0 million student visits in 2016 and 50 company-owned studios. YOGA is the only national, multi-discipline yoga instruction company, and its highly recognizable brand is present in six US markets: Los Angeles, Orange County (California), New York City, Northern California, Boston and Baltimore/Washington D.C. Its teachers taught more than 180,000 classes in its studios and attracted more than 225,000 students in 2016.
The company has yet to issue quarterly results since going public and no date is confirmed as of yet. Looking at its 1Q16 results (provided in its IPO prospectus), revenue fell 7% YoY to $14.0 mln. For 2Q17, YOGA said it expects revenue to decline roughly 6% YoY to $12.3-12.6 mln. The decrease in 1H17 revenue is mostly due to an increase in deferred revenue. In July 2016, YOGA started offering a more flexible pricing strategy that has shifted more sales toward class packages and away from monthly memberships. This results in having to recognize revenue over a longer time period.