Evercore ISI analyst Warren Cheng added shares of Planet Fitness (NYSE:PLNT) to Tactical Outperform List ahead of the company’s earnings report that is due tomorrow.
Cheng likes PLNT stock from a tactical standpoint, mostly because of the ability “to potentially benefit from an inflation trade-down” as well as a pivot to the “Experiences-from-Things trade” that Cheng believes will gain even more steam over the summer.
Moreover, the analyst says PLNT is likely to deliver a “significant” Q1 sales and earnings beat tomorrow amid the “sharp recovery in member joins in February/March.”
“Our view is based on our channel checks and recent conversations, the acceleration in other ‘COVID-loser’ activities in 1Q (Booking.com gross bookings, Live Nation tickets sold, and TSA check-ins, hotel RevPAR, Tripadvisor monthly unique users), and the recent surge in our EVRISI limousine and airlines company surveys,” Cheng said in a client note.
The analyst is calling for Q1 sales and EPS of 205 million and $0.31 vs consensus of $190 million and $0.27, respectively.
PLNT stock is down nearly 1% in premarket today.
By Senad Karaahmetovic