Planet Fitness up after JPMorgan calls it gym survivor

JPMorgan upgrades Planet Fitness (NYSE:PLNT) to an Overweight rating from Neutral on a positive view that it can survive in a post-pandemic industry that might see consolidation. Valuation is also seen as attractive after the sell-off of shares.

“Planet Fitness’ 2,001 store base gives brand reach and awareness that doesn’t exist in any other gym brand and $10 per month is famously the low-cost provider. We believe post-crisis demand for fitness will increase, and the brand’s suspension of dues collection matched with ACH (direct from checking account) consumer payment method makes this subscription model highly sticky.”

The firm also notes the Planet Fitness balance sheet is in very good shape with over $500M of cash sitting on it.

JP assigns a price target of $51 based off 25X the 2021 EPS estimate.

https://seekingalpha.com/news/3558536-planet-fitnessplus-9-after-jpmorgan-calls-gym-survivor