Sam Boughedda

Investing.com — Planet Fitness Inc (NYSE:) was upgraded from Neutral to Overweight by JPMorgan) analyst John Ivankoe Wednesday. 

Planet Fitness shares are currently trading at $90, according to the analyst. The company is upgrading its low-cost gym business based upon factors such as store growth and usage trends. They also have low labor exposure.

JPM conducted a site scrape and found Planet Fitness had 2,318 gyms as of May 10, which translated to 27 unit openings for the quarter.

The low cost value proposition comes from a store with 12-15 employees per gym.

Ivankoe added that F22 offers high visibility for the return capital to shareholders. 

Stock of Planet Fitness rose by 4.23% on Wednesday