Analysts Bump Up Price Target On This Fitness Center Operator

DA Davidson analyst Linda Bolton Weiser raised the price target on Planet Fitness Inc PLNT to $110 from $105 and kept a Buy rating on the shares, implying an upside of 18%.
The analyst noted the company's $800 million deal to acquire 114 locations from its top franchisee, Sunshine Fitness, which should be about 15c-20c earnings accretive to 2022 EPS as a positive point.
Linda also noted the better than expected preliminary 2021 metrics update as helping the company's prospects.
Morgan Stanley analyst Brian Harbour raised the price target on Planet Fitness to $106 from $101 (14% upside) and maintained an Overweight rating.
Member gains and 2021 development ahead of guidance reinforce the key elements of his Overweight thesis and set Planet up for a favorable 2022, Harbour notes.
Planet Fitness announced yesterday that it agreed to acquire Sunshine Fitness Growth Holdings, LLC, an owner and operator of more than 100 Planet Fitness clubs in the Southeast U.S., in a cash and stock transaction valued at $800 million.
The company expects the deal to be accretive to its adjusted EPS in the low double-digit percentage range in 2022.
Planet Fitness ended FY21 with 15.2 million members, an increase of 1.7 million members over the past 12 months.
Price Action: PLNT shares are trading lower by 0.09% at $93.04 on the last check Wednesday.

Analyst Calendar