Planet Fitness Called the ‘Walmart of Gyms’ by Jefferies; Shares Rise | Global News Avenue

Planet Fitness (PLNTJefferies research analysts called it the “Walmart of gyms,” noting that the fitness chain’s size and low prices are seen as benefiting from health-conscious Americans and higher membership prices on Tuesday. The company’s stock price rises.

Jefferies names Planet Fitness a top pick in fitness and wellness for 2025, boosting the company’s valuation price target Increased from $130 to $150. It maintained a “buy” rating on the stock.

“Healthy living trends and a shift toward affordability are driving membership growth,” analysts wrote in a note to clients on Tuesday, adding that recent price increases at Planet Fitness are driving membership growth. Same store sales.

Jefferies highlights “high margins and strong cash flow”

Analysts said the company franchise As the company puts it, this model “ensures high profits and strong cash flow” internal rate of return Increase franchisee unit expansion.

They also noted that at the November meeting new CEO Colleen Keating took over in June and they found her “focused and boosted our confidence”. They added that Keating has “a clear strategy to refine the brand positioning, improve the member experience, be customer-centric and engage with franchisee“.

In recent trading on Tuesday afternoon, Planet Fitness shares were up 2.1% at around $101. The stock has gained nearly 40% since the start of 2024, outpacing the S&P 500’s gain over the same period.