Analyst Max Rakhlenko from TD Cowen maintained a Buy rating on Planet Fitness and increased the price target to $135.00 from $125.00.
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Max Rakhlenko has given his Buy rating due to a combination of factors that suggest strong future performance for Planet Fitness. The company is expected to deliver robust second-quarter results, with comparable sales projected to rise by 6.4%, surpassing market expectations. This positive outlook is supported by favorable checks and a constructive turnaround, indicating that momentum is building and the company is well-positioned for growth.
Investors are optimistic, as evidenced by a 14% year-to-date increase in shares, and anticipate a multi-year cycle of exceeding expectations and raising guidance. Despite recent share volatility, particularly around earnings announcements, any dips are expected to be short-lived due to the company’s strong business momentum and compelling catalysts. Furthermore, the potential for continued strength in the Black Card membership mix and anticipated improvements in financial metrics, such as EPS and EBITDA margins, reinforce the positive sentiment surrounding Planet Fitness’s stock.
In another report released on July 10, Canaccord Genuity also maintained a Buy rating on the stock with a $126.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PLNT in relation to earlier this year.