JPMorgan Assumes Coverage Of Planet Fitness At Overweight

JPMorgan's John Ivankoe assumed coverage of Planet Fitness Inc (NYSE: PLNT) at Overweight with a price target of $22.00.

Ivankoe expects Planet Fitness catalysts to be strong long-term franchise unit driven growth and superior same store sales growth, both driving up future earnings. "Above average long-term franchise driven unit growth [...] and a strong history of positive same store sales growth expected to drive 10–15 percent of adjusted EBITDA."

Related Link: Bad Sign For Fitbit: Fitness Bands Are Getting Smarter And Cheaper

The analyst dispelled the company's lofty guidance, however. Planet fitness "argues for at least 4,000 U.S. units and another 300 in Canada, and our analysts based on the current penetration of PLNT's top 5 markets is for 2,500+ U.S. units and 300 in Canada," which is still a healthy metric, stated Ivankoe.

At time of writing, Planet Fitness was trading up 1.07 percent at $17.91.