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On Tuesday, TD Cowen maintained a positive stance on Planet Fitness (NYSE:PLNT) shares, reiterating a Buy rating and a price target of $125.00. The stock, currently trading at $106.39, has demonstrated remarkable momentum with a 52% return over the past year. According to InvestingPro analysis, the company maintains impressive gross profit margins of 60.3%, though current valuations suggest the stock may be trading above its Fair Value. The firm’s analyst, Max Rakhlenko, acknowledged the company’s robust commencement of the fiscal year 2025, but suggested that investors might need to exercise patience in the near term. Rakhlenko pointed out that the fourth quarter earnings per share (EPS) could serve as a significant moment for the stock, potentially leading to a temporary halt in its ascent.
Rakhlenko noted that while first-quarter indicators are trending down and a conservative outlook for fiscal year 2025 is anticipated by investors, there is optimism for momentum to increase as the year advances. He mentioned that first-quarter membership additions are expected to be lower than the previous year’s, but underscored the company’s pricing strength, particularly the favorable uptake of the Black Card membership. With the company’s next earnings report due in just 14 days, InvestingPro subscribers can access comprehensive financial health scores and 15+ additional ProTips to make informed investment decisions.
Planet Fitness, according to Rakhlenko, remains TD Cowen’s top pick due to its compelling long-term risk-reward profile. The firm’s analysis indicates that despite the immediate forecast of a conservative guide and a potential plateau in share price, the overall trajectory for Planet Fitness is positive, supported by the company’s ability to command higher prices and the popularity of its premium membership tier.
Investors are advised to keep an eye on the upcoming quarterly financial results, which will likely clarify the company’s performance and provide further insight into its growth potential for the rest of the year. The reiterated price target of $125.00 suggests that TD Cowen remains confident in the fitness chain’s value proposition and market position. With a market capitalization of $9 billion and trading near its 52-week high of $110.00, Planet Fitness continues to demonstrate strong market presence despite elevated valuation multiples.
In other recent news, Planet Fitness has been the subject of several analysts’ reports. TD Cowen has shown a positive outlook on the fitness chain, raising the company’s price target from $120.00 to $125.00 and maintaining a Buy rating. The firm’s confidence in Planet Fitness is based on its forecasted fiscal year 2026 EBITDA of $658 million and the potential for a multi-year turnaround. On the other hand, Stifel analysts have adjusted their stance on Planet Fitness stock, setting a revised price target at $90, up from the previous $85, while maintaining a Hold rating.
The company has reported an increase in its membership to approximately 19.7 million and a 5.0% rise in system-wide comparable store sales for the fiscal year 2024. Planet Fitness also opened 150 new gyms within the fiscal year, including 86 new locations in the fourth quarter alone. The company has also recently welcomed Chip Ohlsson as Chief Development Officer and Brian Povinelli as Chief Marketing Officer.
These recent developments underscore the strength of Planet Fitness’s franchise economics and the company’s potential for growth. Analysts from both TD Cowen and Stifel have expressed optimism about the company’s strategic initiatives and potential for future earnings growth. However, they also note that it could take several years for the company to achieve the goal of opening over 200 units annually.
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