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Canaccord Genuity raised its price target on Planet Fitness (NYSE:PLNT) to $126.00 from $120.00 on Thursday, while maintaining a Buy rating on the fitness chain’s stock. According to InvestingPro data, the company currently trades at $102.15 with a market capitalization of $8.6 billion, and analysis suggests the stock is trading near its Fair Value.
The research firm conducted a survey of 65 Planet Fitness locations in May and early June, including 50 locations previously surveyed in March, plus 15 competitors near new or soon-to-open Planet Fitness clubs. The expanded survey aimed to assess Black Card membership trends, impacts of the Classic (White Card) price increase, and reasons for membership cancellations. The company’s impressive 59.68% gross profit margin and 10.26% revenue growth support its pricing strategy.
Canaccord’s survey found that the company’s click-to-cancel feature is not significantly impacting member churn, addressing investor concerns about potential membership losses from easier cancellation options. The research also indicated Black Card penetration is likely holding steady at approximately 65%.
The survey revealed that new Planet Fitness locations are successfully taking market share from competitors while experiencing only "manageable cannibalization" of nearby company clubs. These findings contributed to Canaccord’s decision to increase its estimates for the fitness chain.
Canaccord described Planet Fitness as "one of the most attractive franchisor investments in the public market," noting that the White Card price increase appears to be making the Black Card membership option more attractive to consumers rather than negatively impacting overall membership levels. InvestingPro analysis reveals 12 additional investment tips for PLNT, with 9 analysts recently revising earnings estimates upward. Get the complete analysis and detailed Pro Research Report, available exclusively with an InvestingPro subscription.
In other recent news, Planet Fitness reported its first-quarter 2025 earnings, revealing a revenue of $276.7 million, marking an 11.5% increase from the previous year. Despite this growth, the company missed its earnings per share (EPS) forecast, reporting $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. Similarly, JPMorgan increased its price target for Planet Fitness to $108, maintaining an Overweight rating due to the company’s promising growth prospects. TD Cowen also maintained a Buy rating, with a price target of $125, highlighting the addition of 900,000 new members and strong Black Card membership growth. At the recent annual meeting, Planet Fitness stockholders approved the 2025 Omnibus Incentive Plan and amendments to the company’s charter, including the removal of supermajority voting requirements. The election of three directors and the ratification of KPMG LLP as the independent accounting firm were also confirmed. These developments reflect Planet Fitness’s continued focus on strategic growth and corporate governance.
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