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Planet Fitness stock bounces after a double upgrade to ‘strong buy’ at Raymond James

Shares of Planet Fitness Inc. bounced 2.2% in afternoon trading Monday, after the fitness center company was doubled upgraded at Raymond James, citing a “highly resilient” business model and “attractive” valuation. Analyst Joseph Altobello raised his rating by two notches to strong buy from market perform, while setting a price target for the stock (PLNT) of $70, which implied about 23% upside from current levels. “The stock is well off its highs from last fall and has been notably weak of late, underperforming the broader market despite its resilient and recession-resistant business model and our expectation for healthy growth in 2023,” Altobello wrote in a note to clients. “Further, PLNT has not interest rate risk and very little near-term debt maturities, while current valuation is well below its recent historical average.” The stock, which closed Friday at a two-year low, has tumbled 29.9% over the past 12 months, while the Dow Jones Industrial Average has declined 16.0%.

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