Planet Fitness stock price target raised to $135 by TD Cowen

Investing.com - TD Cowen raised its price target on Planet Fitness (NYSE:PLNT) to $135.00 from $125.00 on Wednesday, while maintaining a Buy rating on the fitness chain’s stock. The company’s stock is currently trading near its 52-week high of $113.96, with an impressive year-to-date return of 14.85%, according to InvestingPro data.

The research firm expects strong second-quarter results with comparable sales growth of 6.4%, potentially exceeding Wall Street expectations. TD Cowen analysts believe Planet Fitness may increase its comparable sales guidance following these results. With earnings scheduled for August 12 and the company maintaining impressive gross margins of nearly 60%, InvestingPro subscribers can access 14 additional key insights about Planet Fitness’s financial health and growth prospects through the platform’s comprehensive Pro Research Report.

Market checks have yielded positive indicators for Planet Fitness, with TD Cowen expressing confidence in the company’s ongoing turnaround efforts. The firm suggests that business momentum is building and sees a clearer path forward for the company.

Planet Fitness shares have gained 14% year-to-date, with the stock’s valuation expanding to 19 times fiscal year 2 EBITDA. This valuation remains slightly above the company’s 10-year average of 17.5x but below its 2019/early 2020 average of 22x.

TD Cowen’s new price target is based on 38 times fiscal year 2 price-to-earnings ratio and 22 times EBITDA, with the firm noting that Planet Fitness may be entering a "beat-and-raise cycle" with an attractive earnings growth profile compared to quick-service restaurant competitors.

In other recent news, Planet Fitness has seen several notable developments. Analysts at TD Cowen reiterated their Buy rating and set a price target of $125, citing the company’s ongoing multiyear turnaround and potential for exceeding earnings estimates. Canaccord Genuity also raised its price target for Planet Fitness to $126, maintaining a Buy rating after conducting a survey that assessed membership trends and pricing impacts. Additionally, JPMorgan increased its price target to $108, highlighting promising growth prospects following a visit to the company’s headquarters. Stifel upgraded Planet Fitness from Hold to Buy, with a new price target of $120, noting the potential for mid-to-high single-digit growth in comparable sales. Furthermore, Planet Fitness announced amendments to its charter and the election of directors after its annual stockholders’ meeting. The company introduced the 2025 Omnibus Incentive Plan aimed at providing competitive compensation to attract and motivate employees and directors. These updates reflect a period of active strategic developments for Planet Fitness.

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