RBC Capital Markets upgraded GYYMF to Outperform after concluding that revenue-led profit growth is entering a clearer phase. The broker raised its price target by nearly 30% following a detailed review of the group’s most recent trading update. Analysts pointed to robust membership inflows and higher average spend per member as key drivers that underpin expectations of accelerating margin expansion over the next two years.

In its latest trading statement, GYYMF indicated that full-year adjusted earnings are set to come in slightly above the top end of consensus forecasts. Management cited tighter control over cost items such as utilities and business rates, which delivered savings of approximately £3 million in the first half. Steady like-for-like revenue growth of around 4% year-over-year also supported the improved earnings outlook, reflecting maintaining momentum despite a challenging consumer backdrop.

With net debt reduced by more than £20 million compared to the prior year, GYYMF now enjoys greater financial flexibility to fund its expansion pipeline of 15 new sites planned over the next 12 months. Economies of scale are expected to drive further efficiencies in procurement and staffing. Investors will be watching closely for signs that capital expenditure on new openings can be met without leverage drifting higher, preserving the group’s investment-grade credit metrics.