Planet Fitness (PLNT) shares advanced Tuesday after Jefferies research analysts called it the “Walmart of Gyms,” pointing to the fitness chain's large size and low prices as the company is seen benefiting from Americans seeking to be healthier and from raising its membership prices.

Jefferies made Planet Fitness its Top Pick for 2025 in the fitness & wellness sector, and raised the firm's price target to $150 from $130. It maintained a “buy” rating on the stock.

Analysts wrote in a note to clients Tuesday that “healthy living trends and shifts toward affordability drive membership tailwinds,” adding that Planet Fitness's recent price increases are boosting same-store sales.

'High Margins and Robust Cash Flow' Highlighted by Jefferies

The analysts said that the company’s franchise model “ensures high margins and robust cash flow,” as the company's internal rates of returns increase unit expansion by franchisees.

They also pointed out that in their November meeting with new Chief Executive Officer Colleen Keating, who took over in June, they found her “laser-focused, increasing our confidence.” They added that Keating has “a well-articulated strategy to refine brand positioning, improve the member experience, put the customer at the center, and partner with franchisees.”

Shares of Planet Fitness were up 2.1% at around $101 in recent trading Tuesday afternoon. The stock is up nearly 40% since the start of 2024, outpacing the S&P 500 over the period.