Piper says Planet Fitness shares ‘extremely attractive’ ahead of results

Piper Sandler analyst Peter Keith raised the firm’s price target on Planet Fitness to $98 from $96 and keeps an Overweight rating on the shares. Piper’s semi-annual teen survey results and channel checks both point to "abnormally strong" new member sign-ups in Q1 for Planet Fitness, which bodes very well for 2023 results given its membership model, the analyst tells investors in a research note. The shares have lagged year-to-date, from what is likely a pushback on valuation, yet the company’s current valuation on a relative basis to the S&P 500 is at trough levels, contends Piper. The firm thinks Planet Fitness shares currently present an "extremely attractive risk/reward" and should be bought before the Q1 results in the first half of May.