Piper Jaffray Starts Planet Fitness (PLNT) at Overweight

Piper Jaffray initiates coverage on Planet Fitness (NYSE: PLNT) with a Overweight rating and a price target of $19.00, citing proven model, deep pipeline and strong brand.

Analyst Sean Naughton commented, "We believe Planet Fitness is poised for continued growth through new unit expansion (~200/yr), higher royalty rates and continued benefits of membership mix. We believe Planet Fitness' "high value, low price" model will continue to resonate with consumers as our survey indicates price as the most important factor in joining a gym. With strong cash flows and predictable revenue, we believe the company is positioned to expand ROIC and grow EBITDA in the mid to high teens."

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 $16.78 yesterday.

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