Planet Fitness ‘pullback presents an attractive entry point,’ claims RBC Capital

Planet Fitness (NYSE:) was started at Outperform with an $86 per share price target at RBC Capital Markets by analysts on Friday.

The analysts told investors in a note that they see PLNT’s highly franchised model delivering strong ongoing earnings growth in a normalized post-pandemic environment.

“We expect this to be driven in-part by sustained +HSD% same-store sales growth, with our view supported by compelling marketing (e.g. High School Summer Pass), as well as our work with our data science team (RBC Elements™). New store growth will remain a key point of debate near-term, but we believe the recent pullback presents an attractive entry point for PLNT shares,” the analysts wrote.

RBC is modeling EPS growth of +37% in 2023, followed by more than 20% growth thereafter.

“Given the majority of PLNT’s top-line is derived from stable and predictable sources (e.g. franchise royalties/fees, corp. store membership dues, etc.), we see PLNT’s model as attractive in a still-uncertain macro,” said the analysts.

PLNT shares are down over 13% in 2023, trading around the $70 per share mark.