PLNT - Planet Fitness seen benefiting from gym industry consolidation

Macquarie reiterates its Outperform rating on Planet Fitness ([[PLNT]] +0.2%) on the membership and franchisee resiliency it sees for gym operator. Analyst Paul Golding thinks Planet Fitness is poised to win the COVID-19 gym consolidation. "We see brick-and- mortar fitness continuing this wave of consolidation as independent and mid -tier gyms pull the plug, especially in CA and NY, given the prolonged shutdowns," he notes. The list of gym closings includes 24 Hour Fitness, Flywheel and Town Sports. "Planet's almost 2,100 (est.) stores provide convenience, flexibility, and value for members trading down or looking to complement a virtual setup at home," notes Golding. For Q3, Macquarie models 34 new store openings, a total membership figure at quarter end of 14.7M, revenues of $121M vs. $109M consensus and adjusted EBITDA of $42M.Looking further down the road, Macquarie sees FY21 EPS from Planet Fitness of $1.63 vs. $1.66 consensus and FY22 EPS

For further details see:

Planet Fitness seen benefiting from gym industry consolidation