There may be quite a few new Planet Fitness (PLNT) locations opening up soon as the chain of fitness centers looks to acquire bankrupt former rival Blink Holdings. This news sent PLNT stock up more than 5% in trading on November 6.
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Blink Holdings was a luxury gym chain. However, its plan to enter the budget market did not go well and Blink shut its doors. A bankruptcy auction followed, and Planet Fitness was there to get in on the action. However, it lost out to PureGym, a privately-held gym chain out of the United Kingdom.
That did not deter Planet Fitness, and it is making another play for the Blink properties in the U.S. Planet Fitness offered $142 million, including a deposit for $28.4 million, if it does not need to address antitrust concerns with the acquisition. The purchase price rises to $155 million if antitrust becomes an issue.
A Play for Public Connection
Separately, Planet Fitness is looking to better connect with its user base and has offered free massages on Election Day, and that included hydro-massages. It is also plans to open up a new location in Ohio. Planet Fitness already has several locations in the area, and the new location plans to open starting in mid-November.
Is Planet Fitness Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 15 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 34.36% rally in its share price over the past year, the average PLNT price target of $86.29 per share implies 2.51% upside potential.
