William Blair analyst Sharon Zackfia has reiterated their bullish stance on PLNT stock, giving a Buy rating on December 9.
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Sharon Zackfia’s rating is based on Planet Fitness’s recent financial maneuvers and the company’s growth prospects. The company has completed a $750 million refinancing, which is expected to modestly enhance earnings per share growth over the next couple of years. Additionally, Planet Fitness has initiated a significant share repurchase program, which is anticipated to further support earnings growth.
Furthermore, Zackfia highlights the company’s strong enterprise value and the high visibility of healthy profit growth in the coming years. Despite some risks such as low barriers to entry and potential brand degradation, the brand’s long-term opportunity remains robust due to its industry-leading low-price and non-intimidating club format. These factors combined have led to a Buy rating for Planet Fitness.
In another report released on December 9, RBC Capital also maintained a Buy rating on the stock with a $135.00 price target.