Analyst Max Rakhlenko of TD Cowen maintained a Buy rating on Planet Fitness, retaining the price target of $135.00.
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Max Rakhlenko has given his Buy rating due to a combination of factors that highlight the strong performance and potential of Planet Fitness. Despite some initial concerns about the click-to-cancel rates slightly exceeding expectations, the company’s fundamentals remain robust. The impressive second-quarter results, including significant net additions and an increase in Black Card membership, indicate that the business is gaining momentum.
Rakhlenko believes that the click-to-cancel issue is manageable and could normalize soon, especially as it is being counterbalanced by strong new memberships. Additionally, several catalysts are expected to drive future growth, such as the ongoing fitness momentum, the success of promotional initiatives like the High School Summer Pass, and potential benefits from pricing strategies. These factors, along with upcoming events like the Analyst Day, are anticipated to positively influence investor sentiment and support the Buy rating.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $175.00 price target.