Alexander Perry, an analyst from Bank of America Securities, reiterated the Buy rating on Planet Fitness (PLNT – Research Report). The associated price target is $90.00.
Alexander Perry has given his Buy rating due to a combination of factors, including the recent appointment of a new CEO and the company’s valuation. The incoming CEO, Colleen Keating, brings a wealth of experience from the hospitality and property management sectors, which can be advantageous for Planet Fitness’s brand development, recurring revenue strategies, and franchisee relations. Perry perceives her expertise as highly relevant for steering the company forward and contributing to its future success, particularly as she will also be involved in selecting the new CFO.
Furthermore, Perry notes that despite a slowdown in foot traffic in January, which was likely affected by severe weather, Planet Fitness experienced a significant pickup in February and March. This rebound suggests resilience and the potential for continued growth. Additionally, the stock is trading at a valuation close to what Perry considers to be trough levels, at approximately 13 times the projected 2025 enterprise value to EBITDA, which bolsters the case for a Buy rating. Perry believes that these elements, alongside the company’s solid performance metrics, present a compelling opportunity for investors.
According to TipRanks, Perry is an analyst with an average return of -8.4% and a 27.94% success rate. Perry covers the Consumer Cyclical sector, focusing on stocks such as Harley-Davidson, Topgolf Callaway Brands, and Fox Factory Holding.
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Planet Fitness (PLNT) Company Description:
Planet Fitness, Inc. engages in the operation and franchise of fitness centers. It operates through the following segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment includes operations related to the company’s franchising business in the U.S., Puerto Rico, Canada, the Dominican Republic, and Panama. The Corporate-Owned Stores segment deals with the operations with respect to all corporate-owned stores throughout the U.S. and Canada. The Equipment segment sells equipment to franchisee-owned stores. The company was founded by Michael Grondahl and Marc Grondahl in 1992 and is headquartered in Newington, NH.
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