Cowen analyst, Oliver Chen reiterated his Outperform rating and raised his PT to $19 from $18 as Planet Fitness (NYSE: PLNT) posted strong comps of 6.8% driven by member growth.

The majority of the comp beat was driven by member growth (total active members +16.9% y/y). The Black Card percentage was up ~1% vs. LY. A portion of the comp increase was driven by a less-than-expected headwind related to the Point-of-Sale change last year.

The mix of new stores coming into the comp base was higher vs. mature stores. On the franchise side (~33% of rev. mix), comps were +7% (vs. Cowen est. +5.6%), with the result driven by higher members per comp store, as well as slightly higher dues per member. The average royalty rate was 3.59%, up from 3.41% in 1Q15, which was driven by more stores that opened with the current royalty rate of 5%.

On the corporate-owned side (~31% of rev. mix), comps were +4.9% (vs. Cowen est. +2.0%), driven by high-performing new store openings rolling into the comp base.

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 $15.62 yesterday.