Planet Fitness: Strong Market Position and Growth Prospects Justify Buy Rating

Analyst Brian McNamara from Canaccord Genuity maintained a Buy rating on Planet Fitness (PLNT – Research Report) and increased the price target to $126.00 from $120.00.

Brian McNamara has given his Buy rating due to a combination of factors that suggest Planet Fitness is positioned well in the market. The recent survey conducted by McNamara indicates that the introduction of the click-to-cancel feature has not led to a significant increase in membership cancellations, with most locations reporting stable membership levels. This suggests that the convenience of the feature is appreciated by members without negatively impacting retention rates.
Additionally, the Black Card membership continues to show strong penetration, maintaining a level near 65%, which is a positive indicator of customer loyalty and value perception. The expansion of new Planet Fitness locations is also contributing positively by capturing market share from competitors, while managing to avoid significant cannibalization of existing clubs. These factors, combined with an increased price target of $126, support McNamara’s view of Planet Fitness as an attractive investment opportunity in the franchisor space.

In another report released on May 29, J.P. Morgan also maintained a Buy rating on the stock with a $108.00 price target.