Planet Fitness added as new long idea at Hedgeye (NYSE:PLNT)

Gym operator Planet Fitness (NYSE:PLNT) was added as a new long idea at Hedgeye.

“Our store and market analysis support a sustained, long-term unit growth opportunity for PLNT,” Hedgeye analysts Brian McGough and Sean Jenkins wrote in a note on Sunday. “Cannibalization risks look minimal and incremental markets look to be as good, if not better, in terms of aggregate demographics relative to the prior base.”

The Hedgeye report comes after Planet Fitness (PLNT) last Tuesday reported Q2 results that beat expectations on the top and bottom line, sending the shares up 6%.

“We vetted comp drivers, including price changes and attrition risk, the growth opportunity of the Black Card membership, and direction trends in competitive intensity, all of which came away as a positive for the company,” the analysts added in the note.

Planet Fitness (PLNT) has short interest of 7.4%.