Planet Fitness stock initiated with Buy rating at UBS on growth outlook

Investing.com - UBS initiated coverage on Planet Fitness (NYSE:PLNT) with a Buy rating and a price target of $125.00 on Friday. According to InvestingPro data, the company maintains impressive gross profit margins of 59.7% and has demonstrated strong revenue growth of 12.54% over the last twelve months.

The firm’s analysis of growth drivers suggests EBITDA upside of $208M-$245M by 2027 on a run rate basis, while current valuation multiples imply roughly half of that upside for the fitness chain. The company’s current EBITDA stands at $513.21M, with InvestingPro analysis showing 8 additional key insights about the company’s growth potential.

UBS projects EBITDA growth of 12-13% through 2027, exceeding the Street’s expectation of 11.5%, driven by new openings reaching 185-190 locations by 2027.

The firm views Planet Fitness as having a recession-resilient, asset-light business model with scalable and durable growth outlook supported by a healthy pipeline of new units.

UBS identified potential positive catalysts including Black Card price increases and Planet Fitness becoming more asset-light in Spain, with the $125 price target based on 17-18x EV/EBITDA, representing a discount to the company’s 5-year average of 18-19x.

In other recent news, Planet Fitness has garnered attention from multiple financial analysts who have reiterated their positive outlook on the company. JPMorgan maintained an Overweight rating with a price target of $108 ahead of Planet Fitness’s upcoming third-quarter 2025 earnings report, scheduled for November 6. Similarly, TD Cowen reiterated its Buy rating, setting a price target of $135, despite noting recent pressures on the stock. Stifel also reaffirmed its Buy rating, maintaining a $120 price target, and highlighted expectations of improved sales growth due to enhanced marketing efforts.

Guggenheim raised its price target for Planet Fitness to $120 from $110, maintaining a Buy rating, citing an underperformance compared to the S&P 500 and management’s cautious outlook on sales. Raymond James increased its price target to $122 from $110, with a Strong Buy rating, based on a revised price-to-earnings multiple applied to future earnings estimates. These developments underscore a consensus among analysts for a positive trajectory for Planet Fitness, despite some market challenges.

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