Planet Fitness has invited everyone to leave 2020 behind and to get fit in 2021 by offering potential clients free enrollment and a monthly fee of just $10 a month with no commitment from January 1–7.
Planet Fitness (PLNT) set out to understand more about New Year’s resolutions and which ones Americans prioritize going into the new year. 84% of those surveyed indicated that they intend on making at least one resolution for 2021, with fitness and overall health and wellness topping their priority lists.
“Motivation is one of the biggest obstacles to fitness and after such a difficult year, it’s more important than ever to break free from 2020 and start 2021 with hope and optimism. We encourage everyone to get moving and experience all the physical and mental benefits that exercise offers,” said Jeremy Tucker, chief marketing officer at Planet Fitness.
Planet Fitness prioritizes its members’ and employees’ safety, with it improving its safety and sanitization procedures at its expansive and well-ventilated fitness centers. These measures include touch-less check-in, a crowd meter on the Planet Fitness app showing members how full the gym is in real time, increased sanitization, daily temperature checks for employees and compulsory wearing of masks while not actively working out.
Planet Fitness will also provide both members and non-members access to over 500 exercises for all levels and interests through its free mobile app. (See PLNT stock analysis on TipRanks)
BMO Capital analyst Simeon Siegel reiterated his Buy rating on Planet Fitness recently and raised his price target from $70 to $80 (4% upside potential).
After meeting with Planet Fitness executives, Siegel admitted that the near-term outlook for the company remains uncertain, but he is optimistic that the company is well positioned to successfully emerge from the pandemic. Bankruptcies of competitors and a growing online and digital presence should help Planet Fitness gain market share going forward.
Overall, consensus among analysts is a Moderate Buy based on 6 Buys, 3 Holds and 1 Sell. The average price target of $74.44 suggests that Planet Fitness shares are slightly over-valued and downside potential of around 3% exists over the next 12 months.
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