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

• Jefferies analysts raised their price target on Planet Fitness, calling the gym operator the “Walmart of gyms,” alluding to the chain’s size and low prices.

• Analysts named Planet Fitness a Top Pick for 2025 in the Fitness & Wellness sector and maintained a Buy rating on the stock.

• Jeffries said Planet Fitness is benefiting from healthy living trends and higher membership prices.

Planet Fitness (PLNTJefferies research analysts have dubbed the company the “Walmart of gyms,” and the company is seen as benefiting from Americans seeking better health and higher membership prices. Noting that the price, the stock rose on Tuesday.

Jefferies named Planet Fitness a 2025 Top Pick in the Fitness & Wellness category, boosting the company’s sales. target price From $130 to $150. The company maintained its rating on the stock as “buy.”

“Healthy living trends and a shift towards affordability are providing tailwinds for memberships,” analysts wrote in a note to clients on Tuesday, adding that Planet Fitness’ recent price hikes have led to higher memberships. He added that he is supporting the Existing store sales.

Analysts believe that the company’s franchise The company says the model “ensures high profit margins and strong cash flow.” internal rate of return Promote unit expansion by franchisees.

They also pointed out at the November meeting: new chief executive officer They felt that Colleen Keating, who took over in June, was “laser focused and boosted our confidence”. They added that Keating “has a clear strategy to refine the brand’s positioning, improve the member experience, put the customer at the center and partner with customers.” Franchisee”

In recent trading Tuesday afternoon, Planet Fitness stock rose 2.1% to about $101. The stock is up nearly 40% since the start of 2024, outperforming the S&P 500 over that period.

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