Planet Fitness (PLNT) PT Raised to $103 at Guggenheim

Guggenheim analyst John Heinbockel raised the price target on Planet Fitness (NYSE: PLNT) to $103.00 (from $90.00) while maintaining a Buy rating.

The analyst commented, "Although the COVID recovery is not complete—memberships, club openings, total revenue, and EBITDA are below 2019 levels—we believe there is sufficient visibility to, once again, have confidence in a five-year (or more), capital-light 10-15% growth algo. PLNT dominates the physical value fitness quadrant and is, likely, on a path to double its membership base, to 30 million, with the Gen Z cohort an especially lucrative demographic target. We believe these member gains, at higher ASP’s, a function of both fee increases and mix, would flow through the P&L at ever-higher margins enabling EBITDA margin to approach 45%. We raise our 2021-2022 estimates and our PT to $103 from $90 reiterating our Buy in the process."

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