P Morgan Assumes Coverage On Planet Fitness Shares With An Overweight Rating

J.P. Morgan's John Ivankoe Assumed Coverage of Planet Fitness PLNT at Overweight with a price target of $22.00. Ivankoe forecasted Planet Fitness catalysts to be strong long-term franchise unit driven growth and superior same store sales growth, both driving up future earnings. "Above average long-term franchise driven unit growth… and a strong history of positive same store sales growth expected to drive 10-15% of adjusted EBITDA." The analyst dispelled the company's lofty guidance, however. Planet fitness "argues for at least 4,000 U.S. units and another 300 in Canada, and our analysts based on the current penetration of PLNT's top 5 markets is for 2,500+ U.S. units and 300 in Canada" which is still a healthy metric stated Ivankoe. At the time of writing, Planet Fitness was trading up 1.19% at $17.93.