Cowen Raises Price Target on Planet Fitness (PLNT) to $25 Following 3Q

October 27, 2016 7:40 AM EDT
Get Alerts PLNT Hot Sheet
Price: $20.03 +0.15%

Rating Summary:
    13 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Cowen reiterated an Outperform rating on Planet Fitness (NYSE: PLNT), and raised the price target to $25.00 (from $24.00), following the company's 3Q earnings report. PLNT reported overall system-wide comps of +10.0%, ahead of the Street at +7.3%. About 90% of the comp was driven by an increase in members. Equipment revenues were +38.7%, driven by equipment sales to new franchise-owned store related to more new equipment sales vs. last year and also an increase in replacement equipment sales to existing franchisee-owned stores.

Analyst Oliver Chen commented, "3Q's +10% comp is impressive, given strong new member growth. PLNT's plans to upsize debt to $230mm will yield 4.6x leverage which could decline to ~3x in 4-6 Qs. We believe the addressable market continues to be incredibly large (4,000 units vs.1,242 current), as we continue to view health/ wellness as a long-term trend, & you can't work out on Amazon yet."

For an analyst ratings summary and ratings history on Planet Fitness click here. For more ratings news on Planet Fitness click here.

Shares of Planet Fitness closed at $20.32 yesterday.

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