Planet Fitness: Analysts See Strength In Gym IPO

health club news

Hidden Cameras Found In Tanning Rooms At planet fitness

NY AG goes after Planet Fitness & Total Tan for indoor tanning practices

health club news NY AG goes after Planet Fitness for indoor tanning practices

health club news

Planet Fitness: Analysts See Strength In Gym IPO.

Analysts see strength behind Planet Fitness (NYSE:PLNT), starting the gym operator with top ratings. The the fitness center operator and recent IPO was started with an outperform rating at Credit Suisse and Robert W. Baird on Monday. JPMorgan Chase (NYSE:JPM) gave it an overweight rating and 20 price target and Piper Jaffray also gave it an overweight rating with a 19 price target.

Piper Jaffray analyst Sean Naughton wrote in a note that the company has a strong brand and good pipeline and its “high value, low price” model is good at attracting new members.

Jefferies and Bank of America (NYSE:BAC) started Planet Fitness at a buy rating with a 25 and 19 price target respectively.Planet Fitness: Analysts See Strength In Gym IPO

View Enlarged Image

Randal Konik, with Jefferies, wrote that he thinks the company has good management and said Planet Fitness has brand recognition that would be difficult for other startups to build. He also sees “compelling” growth opportunities for its franchise division.

Planet Fitness shares soared 6% to close at 17.81 in the stock market today.

Earlier this month Planet Fitness priced its 13.5-million share IPO at 16, the top end of its expected range of 14 to 16.

Health and fitness IPOs have done well. Fitness band maker Fitbit (NYSE:FIT) was the biggest tech IPO this year, soaring 48% to 29.68 in its first day of trading on June 18.

FitBit was No. 1 in the wearables market in the second quarter, with 24.3% market share, research firm IDC reported earlier this month. But Apple (NASDAQ:AAPL) is close behind, with the Apple Watch debuting at No. 2.

Fitbit shares closed up 2% Monday.

SoulCycle, the indoor cycling chain, filed for an IPO in July and said it has plans to expand its operations outside its California and New York hubs.Planet Fitness: Analysts See Strength In Gym IPO