Planet Fitness Is 'Attractively Valued' Vs. Gym Peers: Why This Analyst Is Bullish

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.

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“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.

See Also: 16 Analysts Have This To Say About Peloton Interactive