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The analysts told investors in a note that they see PLNT’s highly franchised model delivering strong ongoing earnings growth in a normalized post-pandemic environment.
“We expect this to be driven in-part by sustained +HSD% same-store sales growth, with our view supported by compelling marketing (e.g. High School Summer Pass), as well as our work with our data science team (RBC Elements™). New store growth will remain a key point of debate near-term, but we believe the recent pullback presents an attractive entry point for PLNT shares,” the analysts wrote.
RBC is modeling EPS growth of +37% in 2023, followed by more than 20% growth thereafter.
“Given the majority of PLNT’s top-line is derived from stable and predictable sources (e.g. franchise royalties/fees, corp. store membership dues, etc.), we see PLNT’s model as attractive in a still-uncertain macro,” said the analysts.
PLNT shares are down over 13% in 2023, trading around the $70 per share mark.
