Planet Fitness initiated with a Buy at Canaccord

Canaccord initiated coverage of Planet Fitness (PLNT) with a Buy rating and $120 price target The firm views Planet Fitness as one of the most attractive franchisor investments in the public market. One investor issue is whether the company can return to its pre-pandemic unit growth of 200 new clubs per year, but Canaccord thinks “it can and should happen sooner than later,” the analyst tells investors in a research note. Once the market has confidence it can return to 200 new units annually, the stock can return to its 2019 average multiple of 22-times or higher, contends the firm. Canaccord adds that its survey of 50 Planet Fitness locations suggests the White Card price increase makes its Black Card look more attractive.