Planet Fitness stock rating reiterated at Buy by TD Cowen

Investing.com - TD Cowen has reiterated its Buy rating on Planet Fitness (NYSE:PLNT) with a price target of $135.00, despite recent share pressure. The company currently trades at a P/E ratio of 45.3x and maintains impressive gross profit margins of nearly 60%.

The stock has fallen 6% over the past month and 11% from its July peak, according to TD Cowen analyst Max Rakhlenko, who ranks Planet Fitness as the firm’s "#2 inbound" query from investors. According to InvestingPro data, the stock has shown resilience with a 24% return over the past year, despite operating with moderate debt levels.

The fitness chain is experiencing "very strong gross adds & improved fundamentals" that are being overshadowed by "elevated churn" persisting longer than management anticipated, the analyst noted.

TD Cowen maintains Planet Fitness as its "#1 idea" with what it describes as a "robust catalyst path," though it acknowledges the company needs a "strong Analyst Day to improve sentiment & help support multi-year growth."

The research firm remains bullish on the stock, citing a combination of "defensive and offensive characteristics," ongoing share growth, strong opening profile, and the new management team’s execution of a turnaround that is "taking hold."

In other recent news, Planet Fitness reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.86 and revenue of $340.9 million. These figures exceeded the anticipated EPS of $0.79 and revenue of $329.56 million. Additionally, Jefferies reiterated its Buy rating and maintained a $175.00 price target, highlighting the company’s reaccelerating same-store sales growth of 8.2%, which surpassed the consensus estimate of 5.9%. Raymond James also raised its price target for Planet Fitness to $122 from $110, maintaining a Strong Buy rating based on future earnings projections. Guggenheim increased its price target to $120 from $110, citing a 350 basis point underperformance compared to the S&P 500. Stifel reiterated its Buy rating with a $120 price target, expecting the company’s expanded advertising budget to drive better-than-expected same-store sales growth. These developments reflect the positive sentiment among analysts regarding Planet Fitness’s future performance.

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