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On Thursday, JPMorgan analyst Rahul Krotthapalli increased the price target for Planet Fitness (NYSE:PLNT) shares to $108 from the previous target of $98, while maintaining an Overweight rating on the stock. The adjustment followed a recent visit to the company’s headquarters, which provided deeper insights into the fitness chain’s growth prospects. According to InvestingPro data, analyst targets for the stock range from $88 to $150, with 9 analysts recently revising their earnings expectations upward for the upcoming period.
During the visit on Wednesday, the JPMorgan team met with Planet Fitness CEO Colleen Keating, CFO Jay Stasz, COO Bill Bode, and VP of Investor Relations Stacey Caravella. The discussions highlighted several promising developments that are expected to propel the company’s growth and, consequently, its share price. The management team’s effectiveness is reflected in the company’s impressive 59.7% gross profit margin and 10.3% revenue growth over the last twelve months, according to InvestingPro data.
The analyst expressed a heightened enthusiasm for Planet Fitness’s growth narrative, citing the executive team’s evident drive for expansion. Krotthapalli noted CEO Colleen Keating’s dissatisfaction with the status quo and her continuous pursuit of improved performance metrics across the company.
The leadership team, characterized as relatively new yet quickly adapting, was praised for laying a solid foundation for the brand’s next growth phase. The analyst’s confidence in the company is bolstered by Planet Fitness’s historical resilience through various economic cycles, suggesting a robust business model capable of weathering market fluctuations.
The raised price target reflects the analyst’s optimistic outlook for Planet Fitness, as the company continues to navigate the competitive fitness industry with strategic initiatives and strong leadership at the helm.
In other recent news, Planet Fitness reported its first-quarter 2025 earnings with a revenue of $276.7 million, marking an 11.5% increase year-over-year. Despite this revenue growth, the company missed its earnings per share (EPS) forecast, reporting an EPS of $0.59 compared to the expected $0.62. Stifel analysts upgraded Planet Fitness stock from Hold to Buy, raising the price target to $120, citing potential growth catalysts and improvements in marketing strategies. Additionally, TD Cowen maintained a Buy rating with a $125 price target, highlighting strong member growth and a favorable Black Card membership mix.
Planet Fitness also announced several updates following its annual meeting, including the approval of the 2025 Omnibus Incentive Plan and amendments to its charter, such as the removal of supermajority voting requirements. The election of directors and the ratification of KPMG LLP as the independent accounting firm for 2025 were also confirmed. The company continues to expand, opening 19 new clubs globally, bringing the total to 2,741. Analysts from Stifel and TD Cowen noted the company’s resilience and potential for growth, with Stifel emphasizing legislative changes that could benefit gym memberships. These developments suggest a strong setup for Planet Fitness in the coming year.
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