PLNT - Planet Fitness touted as 'analyst favorite' at Raymond James

Apropos for a gym stock, Planet Fitness ( NYSE: PLNT ) was touted as a “Strong Buy” at Raymond James on Monday.

In a note to clients, the bank’s analysts lifted the stock to not only a bullish rating, but a spot in the “current analyst favorite” list. The gym operator’s “resilient business model” and value-focused offering amid a tougher macro backdrop were highlighted as key factors undergirding the bull case for the stock.

“The stock is well off its highs from last fall and has been notably weak of late, underperforming the broader market despite its resilient and recession-resistant business model and our expectations for healthy growth in 2023,” the note explained. “Further, PLNT has no interest rate risk and very little near-term debt maturities, while current valuation is well below its recent historical average.”

As the company continues its expansion, the analysis expects strong top-line growth to shift investor sentiment in due time. Shares of Planet Fitness ( PLNT ) rose modestly in premarket action on Monday.

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