Planet Fitness: Strong Market Position and Growth Potential Drive Buy Rating

TD Cowen analyst Max Rakhlenko maintained a Buy rating on Planet Fitness (PLNT – Research Report) today and set a price target of $125.00.

Max Rakhlenko has given his Buy rating due to a combination of factors that highlight Planet Fitness’s strong market position and growth potential. The significant increase in membership by 900,000, despite a price hike for the Classic Card, indicates a robust demand and elasticity in their pricing strategy. This growth, coupled with a high Black Card membership mix reaching approximately 65%, provides a positive outlook for the company’s revenue streams.
Furthermore, Planet Fitness is strategically positioned to manage external economic pressures, such as tariffs, due to its proactive measures like early equipment procurement and reduced reliance on China. The rollout of the Click-To-Cancel feature is expected to enhance customer experience and potentially increase sign-ups, mitigating churn concerns. Additionally, the company’s ongoing pilot programs demonstrate a commitment to innovation and adaptability in a competitive industry landscape.

In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $112.00 price target.