Planet Fitness (PLNT) just reported strong Q3 earnings, prompting multiple Wall Street upgrades. Shares of the fitness franchise operator have enjoyed modest growth today but performed extremely well this week. Now that the company has demonstrated progress for the past quarter, Wall Street is raising its predictions for PLNT stock, shifting in an increasingly bullish direction.
What’s Happening with Planet Fitness Stock?
At first glance, Planet Fitness’ performance today might not seem impressive. Shares closed out trading today up 2% and haven’t moved much in the after-hours session. However, PLNT stock is still up 20% for the week, and most of that growth happened before the Q3 earnings report. This indicates that the stock is able to withstand volatile market conditions and continue rising steadily.
In the Q3 report, Planet Fitness reported 5% revenue growth and a net income increase of 3%. Those numbers might be modest, but multiple Wall Street analysts have increased their PLNT stock price targets since the report’s release. Let’s take a closer look at the new price targets.
- Jonathan Komp of Robert W. Baird increased his price target from $92 to $110 while maintaining a Buy rating. His prediction implies 15% upside potential.
- Morgan Stanley (MS) analyst Megan Alexander raised her price target from $89 to $114, implying upside potential of 20%. She maintains a Buy rating as well.
- Yesterday, Jefferies (JEF) analyst Randal Konik increased his price target from $100 to $130, implying 36% upside potential. He described Planet Fitness as “the Amazon (AMZN) of gyms.” He also cited the appointment of its new CEO as a positive catalyst.
Is Planet Fitness Stock a Strong Buy Right Now
Overall, analysts have a Moderate Buy consensus rating on PLNT stock based on five Buys and two Sells assigned in the past three months, as indicated by the graphic below. Even after a 51% rally in its share price over the past year, the average PLNT price target of $88 per share implies 8% downside potential.
