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On Friday, TD Cowen maintained a positive outlook on Planet Fitness (NYSE:PLNT) shares, with analyst Max Rakhlenko reiterating a Buy rating and a price target of $125.00. Currently trading at $93.62, the stock has shown strong momentum with a 48.6% return over the past year. According to InvestingPro data, analyst targets range from $82 to $150, with the consensus maintaining a Buy recommendation. The endorsement follows a period of volatility in the stock’s performance, but the focus remains on the company’s robust member growth and other positive indicators.
Rakhlenko highlighted the addition of approximately 900,000 new members and a Black Card membership mix reaching around 65%, both of which signal strong momentum for the fitness chain. This growth has contributed to the company’s impressive 10.3% revenue growth and maintaining a robust 59.7% gross profit margin. The analyst expressed confidence in the company’s ability to navigate through potential economic pressures, including tariffs, and anticipates a favorable shift in the second half of the year.
The first quarter’s member growth surpassed expectations, even with a 50% increase in the price of the Classic Card. This growth is seen as a sign of normalizing elasticity and bolsters confidence in the company’s potential for accelerated membership increases as the year progresses. Despite the impact of a non-recurring Black Card promotion, which created a 60 basis point headwind, comparable store sales were solid at a 6.1% increase.
The analyst’s comments suggest that if Planet Fitness can overcome the challenges in the second quarter without a negative impact on comparable store sales from increased churn, there could be potential for the company to surpass its full-year guidance.
Rakhlenko’s analysis points to a strong setup for Planet Fitness, with the first quarter’s results providing a solid foundation for the year ahead. The company’s ability to handle external economic pressures and its positive membership trends are key factors underpinning the reaffirmed Buy rating and $125.00 price target.
In other recent news, Planet Fitness Inc . reported its first-quarter 2025 earnings, revealing a revenue of $276.7 million, marking an 11.5% increase year-over-year. Despite this growth, the company fell short of its earnings per share (EPS) forecast, reporting an EPS of $0.59 compared to the expected $0.62. The company opened 19 new clubs, expanding its global presence to a total of 2,741 locations. Analysts from firms such as William Blair have noted the company’s resilience in the face of economic challenges, with Gen Z leading membership growth. The company reiterated its guidance for 2025, expecting to open 160 to 170 new clubs and projecting revenue growth of approximately 10%. Additionally, Planet Fitness anticipates adjusted EBITDA growth of around 10%, reflecting confidence in its strategic direction. The company continues to focus on enhancing member experience and refining its product offerings, with a notable increase in Black Card membership penetration.
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