Planet Fitness Inc. PLNT has healthy "comp drivers" and the current estimates for 2023 appear too conservative, according to Piper Sandler.
The Planet Fitness Analyst: Peter Keith upgraded the rating for Planet Fitness from Neutral to Overweight, while reducing the price target from $73 to $70.
The Planet Fitness Thesis: Piper Sandler’s proprietary Taking Stock With Teens survey suggests 48% of participants were interested in converting to regular membership, Keith said in the upgrade note.
“Additionally, the Black Card price increase from May should provide comp benefits in 2023,” the analyst wrote. “With these and other comp drivers, we can build to a 2023 comp of >10% (vs. consensus of ~7.5%),” he said.
“For valuation, PLNT looks attractively valued versus peers given our confidence in 2023 estimates,” Keith added.
Planet Fitness has a market cap currently hovering at around $5.51 billion. Other stocks to watch in the fitness space include Life Time Group Holdings Company LTH; Peloton Interactive PTON; and Lululemon LULU.
PLNT Price Action: Shares of Planet Fitness had risen by 5.32% to close at $60.63 36.95 on Tuesday.
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