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Investing.com - Guggenheim raised its price target on Planet Fitness (NYSE:PLNT) to $120.00 from $110.00 on Thursday, while maintaining a Buy rating on the stock. Currently trading at $106.12, the company has demonstrated strong momentum with a 40% return over the past year, according to InvestingPro data.
The price target increase follows what Guggenheim described as a 350 basis point underperformance versus the S&P 500, which was primarily driven by an implied moderation in second-half operating momentum and management’s cautious comments regarding Click-to-Cancel and macro-related comparable sales.
Planet Fitness reiterated its 2025 guidance for 10% sales and EBITDA growth, suggesting a 300-500 basis point slowdown during the next six months, which Guggenheim views as "overly conservative."
Guggenheim noted that the Click-to-Cancel impact has been modest so far, and Planet Fitness’s value model should continue to resonate with younger demographics in a more uncertain macro backdrop, while record Black Card penetration drives mid-single-digit average selling price growth.
The firm raised its estimates to account for Planet Fitness’s second-quarter earnings beat, with projections now sitting above both company guidance and consensus estimates.
In other recent news, Planet Fitness reported its second-quarter 2025 earnings, surpassing both earnings per share (EPS) and revenue expectations. The company posted an EPS of $0.86, exceeding the forecast of $0.79, and reported revenue of $340.9 million, which was higher than the anticipated $329.56 million. Despite these positive results, the company’s stock experienced a decline. Additionally, Jefferies reiterated its Buy rating with a $175.00 price target, highlighting the fitness chain’s reaccelerating same-store sales and expanding margins. Planet Fitness reported same-store sales growth of 8.2%, surpassing consensus estimates of 5.9%. The White Card price increase continues to drive comp performance, which Jefferies believes should sustain strong sales. Meanwhile, Raymond (NSE:RYMD) James raised its price target for Planet Fitness to $122.00 from $110.00, maintaining a Strong Buy rating. These developments reflect the company’s ongoing financial performance and market confidence.
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