Planet Fitness (PLNT): Dividend Out Of The Way, Investors Can Focus On Growth - Guggenheim
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Guggenheim analyst, John Heinbockel, reiterated his Buy rating on shares of Planet Fitness (NYSE: PLNT) and believes that shares are poised for outperformance now that the recent, debt-funded special dividend is out of the way.
The analyst believes that even though the 2017E EBITDA multiple has increased from 13.7x to 15.1x the uniquely-healthy and the visible nature of the company's secular growth prospects justify this valuation. He also believes that the vast majority of the 20% appreciation he expects over the next year should stem from EBITDA growth as investors don't need to worry about the health of the consumer or the threat of pure play e-commerce channel disruption.
No change to the price target of $24.
Shares of Planet Fitness closed at $20.01 yesterday.
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