Cowen Starts Planet Fitness (PLNT) at Outperform

Cowen initiates coverage on recent IPO Planet Fitness (NYSE: PLNT) with an Outperform rating and a price target of $21.00, the firm said company's more gym for your dollar model supports long-term growth.

Analyst Jerry Gray commented, "Planet Fitness's strong value proposition and quality store experience support significant market share gains in a highly fragmented $23B U.S. Health Club market. Unit growth and accretive margin mix shift toward the Franchise segment should drive a 20% EPS CAGR and $1 in EPS power by 2019. We are initiating with an Outperform rating and $21 price target (18.5x FY16E EV/EBITDA, 4% FCF yield)."

For an analyst ratings summary and ratings history on Planet Fitness click here. For more ratings news on Planet Fitness click here.

Shares of Planet Fitness closed at $16.78 yesterday.

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