Piper Jaffray Raises Price Target on Planet Fitness (PLNT) to $23 Following 2Q Report
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Piper Jaffray reiterated an Overweight rating on Planet Fitness (NYSE: PLNT), and raised the price target to $23.00 (from $21.00), following the company's 2Q earnings report. System-wide comparable sales grew 7.6% during the quarter, better than the 5.9% the street was expecting and an increase from 6.8% in Q1. Revenues of $91.5M grew 16% year-over-year while the franchise segment grew twice that rate.
Analyst Sean Naughton commented, "Planet Fitness continues to exceed street expectations as comparable sales growth of 7.6% beat the consensus estimate at 5.9%. We're encouraged by the accelerating topline, strong membership growth and on a per store basis, and visibility into further margin expansion and improving returns on capital. Thus, we have raised our target multiple to 17x our CY17E EV/EBITDA estimate (previously 16x) resulting in a $23 price target (previously $21)."
Shares of Planet Fitness closed at $20.33 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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