Planet Fitness Called the ‘Walmart of Gyms’ by Jefferies; Shares Rise

Related Articles

S&P 500 Gains and Losses Today: Index Treads Water in First Post-Christmas Session

KULR Technology Stock Soars to All-Time High After $21M Bitcoin Purchase

Toyota’s Stock Surges on Reported Plans to Raise Its Return on Equity

Key Takeaways

• Jefferies analysts boosted their price target on Planet Fitness, calling the gym operator the “Walmart of Gyms,” alluding to the confine’s large size and low prices.
• The analysts made Planet Fitness their Top Pick for 2025 in the fitness & wellness sector, and maintained a “buy” rating on the livestock.
• Jefferies said Planet Fitness is benefiting from healthy living trends and from charging higher membership payments.

Planet Fitness (PLNT) shares advanced Tuesday after Jefferies research analysts called it the “Walmart of Gyms,” questioning to the fitness chain’s large size and low prices as the company is seen benefiting from Americans seeking to be healthier and from assembling its membership prices.

Jefferies made Planet Fitness its Top Pick for 2025 in the fitness & wellness sector, and raised the inflexible’s price target to $150 from $130. It maintained a “buy” rating on the stock.

Analysts wrote in a note to clients Tuesday that “in good health living trends and shifts toward affordability drive membership tailwinds,” adding that Planet Fitness’s just out price increases are boosting same-store sales.

‘High Margins and Robust Cash Flow’ Highlighted by Jefferies

The analysts state that the company’s franchise model “ensures high margins and robust cash flow,” as the company’s internal tariffs of returns increase unit expansion by franchisees.

They also pointed out that in their November meeting with new Chief Head Officer Colleen Keating, who took over in June, they found her “laser-focused, increasing our confidence.” They joined that Keating has “a well-articulated strategy to refine brand positioning, improve the member experience, put the customer at the center, and helpmeet with franchisees.”

Shares of Planet Fitness were up 2.1% at around $101 in recent trading Tuesday afternoon. The store up is up nearly 40% since the start of 2024, outpacing the S&P 500 over the period.