Broadcom named strategic vendor for Walmart virtualization solutions
On Monday, Guggenheim Securities adjusted its outlook on Planet Fitness (NYSE:PLNT) shares, raising the price target to $110 from $105 while reiterating a Buy rating on the stock. The stock, currently trading at $97.54, has shown impressive momentum with a 59.15% return over the past year. According to InvestingPro data, analyst targets range from $82 to $150, with the company maintaining a GREAT financial health score. The firm’s analyst highlighted Planet Fitness’s strategic position at the crossroads of fitness, affordability, and franchising, which is particularly beneficial in the current economic climate marked by tariff-related uncertainties. The analyst pointed out that Planet Fitness’s affordable average selling price (ASP) of less than $20 per month is accessible for most households, addressing their fitness needs effectively. This pricing strategy has contributed to impressive gross profit margins of 59.69% and steady revenue growth of 10.13% over the last twelve months.
The analyst also noted the strength of Planet Fitness’s marketing efforts, which include the sector’s largest budget and new, impactful creative campaigns. This marketing prowess is seen as a significant advantage in building brand awareness and maintaining a competitive edge. Expectations for the first quarter, often referred to as the "fitness Christmas" due to the surge in gym memberships, are deemed reasonable by the analyst, with an anticipated 700,000 to 800,000 new members joining.
The guidance for the full year, which suggests a flat EBITDA margin, is considered conservative by the analyst. The current valuation metrics from InvestingPro show Planet Fitness trading at an EV/EBITDA multiple of 21.27x and a P/E ratio of 48.51x. While these multiples are high, suggesting slight overvaluation relative to InvestingPro’s Fair Value estimates, the analyst believes this premium valuation, alongside a robust low-teens growth algorithm, justifies the increased price target, maintaining an unchanged valuation perspective on the company’s 2026 outlook. For deeper insights into Planet Fitness’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The report from Guggenheim underscores the company’s potential to continue thriving despite the primary risk of consumer spending capacity being affected by external macroeconomic factors. Planet Fitness’s business model, which capitalizes on a combination of low-cost offerings and strong franchising, is expected to sustain its growth trajectory and investor appeal.
In other recent news, Planet Fitness has seen several notable developments that may interest investors. BMO Capital Markets raised its price target for Planet Fitness shares to $110, maintaining an Outperform rating, following positive discussions with the company’s management about future growth prospects and strategic initiatives. Meanwhile, JPMorgan reiterated its Overweight rating with a price target of $98, citing confidence in the company’s growth models and potential for earnings per share growth. DA Davidson maintained a Neutral rating with an $87 price target, noting the company’s strong fourth-quarter performance, particularly in equipment revenue, while expressing concerns about higher compensation expenses affecting EBITDA growth projections.
Additionally, TD Cowen continues to hold a Buy rating with a $125 price target, emphasizing potential upside despite recent market confusion over guidance and the implementation of a new ’Click To Cancel’ feature. In corporate governance, Planet Fitness announced a bylaw amendment introducing proxy access for stockholders, allowing them to nominate director candidates under specific conditions. This change aligns with broader trends toward enhancing stockholder rights and engagement. These recent developments highlight Planet Fitness’s ongoing strategic efforts and investor engagement initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.