Planet Fitness stock rises after Jefferies says ‘Peloton’s pain is Planet’s gain’


Shares of Planet Fitness Inc. PLNT, -0.53% edged up 0.3% in midday trading Monday, to erase an earlier intraday loss of as much as 2.5%, after Jefferies analyst Randal Konik urged investors to buy, a day before the the gym operator reports third-quarter results. Konik’s recommendation comes after at-home and connected fitness company Peloton Interactive Inc. PTON, -3.35% reported last week a sixth-straight wider-than-expected quarterly loss and provided a disappointing outlook for the holiday season. “[Peloton] reported results that imply in-home fitness is fading, and fading fast,” Konik wrote in a note to clients. “In contrast, our data work suggests gyms are strong and getting stronger, and we see [Planet Fitness] taking massive share long term.” In other words, “Peloton’s pain is Planet’s gain,” he wrote. The company is scheduled to report results before Tuesday’s opening bell, with the company expected to report a ninth-straight quarterly profit that rises to 38 cents per share from 25 cents, according to FactSet. Revenue is expected to climb 52% to $234.5 million. The stock has dropped 21.8% year to date, while Peloton shares have dropped 22.9% and the S&P 500 SPX, +0.29% has declined 8.8%.

This article was originally published by Read the original article here.

Previous article: Midterm elections could be critical for the housing market: One ‘contentious’ issue has split Democrats and Republicans
Next articleCoronavirus Update: Apple and Foxconn detail issues with COVID approach in China


Please enter your comment!
Please enter your name here