Planet Fitness Inc. PLNT has a defensive business model and meaningful store growth opportunity, according to Raymond James.
The Analyst: Joseph Altobello upgraded the rating for Planet Fitness from Market Perform to Strong Buy, while establishing a price target of $70.
The Thesis: The stock has recently underperformed the broader market, despite the company’s “resilient and recession-resistant business model” and prospects of healthy growth in 2023, Altobello said.
“PLNT was able to deliver same-store sales growth in each and every quarter throughout the Great Financial Crisis of 2008-09, while putting together a streak of 53 consecutive quarters of positive comps prior to COVID,” he said.
Planet Fitness’s balance sheet has improved, and its franchisees are “looking to go back on offense,” the analyst said. He added that the company could meet or exceed “its historical cadence of 200+ new store openings in 2023.”
PLNT Price Action: Shares of Planet Fitness had risen by 5.21% to $58.79 at the time of publication Monday.
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