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Jun 29

Peloton and Planet Fitness called long-term winners – Seeking Alpha

Wedbush sees room for both Peloton Interactive (NASDAQ:PTON) and Planet Fitness (NYSE:PLNT) to work out over the long term for investors.

"We believe that both PLNT and PTON will be long-term winners in the fitness space, in that as brick-and-mortar clubs shrink and consolidate, both companies will get their fair share of customers looking for alternatives. However, while PTONs addressable market has inarguably expanded as a result of the pandemic, PLNTs has likely contracted somewhat, as a certain segment of the non-exercising population (PLNTs primary target demographic) is likely to be more hesitant to consider a gym given increased concerns surrounding viruses and germs. Meanwhile, a proliferation of at-home fitness options, as well as growing awareness of these options, cannot help but shrink the population of those seriously considering joining a traditional gym," notes analyst James Hardiman.

Wedbush lifts its price target on Peloton to $63 from $50 after seeing strong data. "While the meteoric growth in Google search volume for Peloton has decelerated somewhat, it remains at 2x last years volume, suggesting the company has a considerable runway for outsized growth," reports Hardiman. Meanwhile, he sees the "flattish" net membership growth at Planet Fitness as good news for shareholders amid the COVID-19 anxiety.

Shares of PTON are up 0.33% premarket and PLNT is 1.30% higher, although the gap for the year is quite large.

Read the rest here:
Peloton and Planet Fitness called long-term winners - Seeking Alpha

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