Planet Fitness Inc. (NYSE: PLNT) entered the market with its initial public offering (IPO) on August 6. Now that the quiet period for this stock is over, the underwriters can issue calls. And this company had an overwhelmingly positive reaction from analysts.
The company set its IPO price at $16, on the high side of its expected price range of $14 to $16. The offering was for 13.5 million shares, with an overallotment option for an additional 2.025 million shares. At the price, the entire offering was valued up to $248.4 million.
The company considers itself one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations.
The locations are typically 20,000 square feet, with Planet Fitness-branded cardio, circuit- and weight-training equipment. The base rate is $10 per month for standard membership.
The underwriters for the offering were JPMorgan, Merrill Lynch, Jefferies, Credit Suisse, Guggenheim, Baird, William Blair, Piper Jaffray and Cowen.
The company was started as Buy with a $19 price target (versus a $16.78 close) at Merrill Lynch. Cowen assigned a Buy rating with a $21 price target. Piper Jaffray started Planet Fitness as Overweight and with a $19.00 price target.
A few other key analysts weighed in on Planet fitness as well:
- Guggenheim initiated coverage with a Buy rating.
- William Blair initiated coverage with an Outperform rating.
- Jefferies initiated coverage with a Buy rating.
- JPMorgan initiated coverage with an Overweight rating and a $20 price target.
- Credit Suisse initiated coverage with an Outperform rating and a $19 price target.
- Baird initiated coverage with an Outperform rating and a $22 price target.
Shares of Planet Fitness were up 5% at $17.63 Monday morning. The stock has a post-IPO trading range of $13.65 to $19.40.
ALSO READ: The Healthiest City in Every State
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.