Analysts Bump Up Price Target On This Fitness Center Operator

By Shivani Kumaresan
  • DA Davidson analyst Linda Bolton Weiser raised the price target on Planet Fitness Inc (NYSE: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.

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