PLNT - Planet Fitness lands upgrade from Piper Sandler with gym trends looking strong

Piper Sandler upgraded Planet Fitness ( NYSE: PLNT ) to an Overweight rating on Tuesday after having the gym club operator set at Neutral.

Analyst Peter Keith and team see attractive levels on PLNT in comparison to peers relative to peers and think the company should benefit from strong participation rates with younger generations based on a recent Piper Sandler survey.

"Importantly, considering potential for a slowing consumer spending environment in 2023, we have a higher degree of confidence in PLNT estimates versus other more discretionary names in our coverage universe... PLNT should not only be a trade-down beneficiary in a slowing economy, but also is still rebuilding back to pre-COVID member levels – and we have outlined building blocks to comp upside for 2023."

Higher Black Card pricing is seen boost comparable sales for PLTN/ Recent app download data also suggests strong trends for PLNT with positive new membership trends.

Piper Sandler assigned a price target to $70 to Planet Fitness ( PLNT ).

The Seeking Alpha Quant Rating on PLNT is flashing Hold.

For further details see: