Jefferies Reiterates Gym Group (GYYMF) Buy Recommendation

Jefferies reiterated a "Buy" rating for Gym Group (OTCPK:GYYMF) on October 16, 2025, setting an average one-year price target of $2.50, which suggests a 28.03% upside from its latest closing price of $1.95. The company projects annual revenue of $278 million, an 18.39% increase, and a non-GAAP EPS of $0.11. Despite the number of institutional funds holding GYYMF remaining stable, total institutional shares decreased by 15.16% in the last quarter, although the average portfolio weight dedicated to the stock increased by 3.60%.

Analysis

Jefferies reiterated a "Buy" recommendation for Gym Group (OTCPK:GYYMF) on October 16, 2025, with an average one-year price target of $2.50/share, implying a 28.03% upside from its $1.95 closing price. This positive outlook is supported by robust fundamental projections, including an 18.39% annual revenue increase to $278 million and a projected non-GAAP EPS of $0.11.

Institutional investor sentiment presents a mixed picture; while the number of funds holding GYYMF remained stable at 23, total institutional shares decreased by 15.16% to 9,250K over the last quarter. However, the average portfolio weight dedicated to GYYMF increased by 3.60%, suggesting that some existing holders are increasing their conviction despite overall share reduction.

This divergence is highlighted by specific fund actions: Destra International & Event-driven Credit Fund significantly reduced its stake by 26.57% and portfolio allocation by 3.31%. Conversely, SPDR(R) Portfolio Developed World ex-US ETF and Avantis International Small Cap Value ETF increased their holdings by 2.70% and 9.16% respectively, indicating selective accumulation among certain institutional players.

Key Decisions for Investors

• Consider the reiterated "Buy" rating and 28.03% price target upside as a strong signal for potential long positions, supported by projected 18.39% revenue growth and $0.11 EPS.
• Exercise caution regarding the mixed institutional sentiment, specifically the 15.16% decrease in total institutional shares, and monitor future fund flow reports for clearer directional conviction.
• Evaluate the divergence in institutional behavior, noting that while some large holders are divesting, others are increasing their allocation, suggesting a nuanced view on the stock's near-term trajectory.