William Blair analyst Sharon Zackfia has reiterated their bullish stance on PLNT stock, giving a Buy rating on February 23.
Sharon Zackfia’s rating is based on Planet Fitness’s strong financial performance in the fourth quarter, where the company surpassed both revenue and earnings per share expectations. The revenue exceeded forecasts by approximately 5%, driven by a significant increase in equipment sales, which were $20 million higher than anticipated. This surge in equipment revenue was primarily due to robust sales to existing franchisee-owned clubs, including additional strength equipment.
Furthermore, the company experienced a 49% growth in equipment sales, an 11% rise in high-margin franchised revenue, and a 9% increase in company-owned revenue. Comparable sales also improved by 5.5%, exceeding prior quarters and expectations. Despite a contraction in EBITDA margin due to low-margin equipment sales, the adjusted EPS increased by 17%, reflecting the company’s solid financial health and growth potential.
In another report released on February 23, RBC Capital also maintained a Buy rating on the stock with a $120.00 price target.
Based on the recent corporate insider activity of 42 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.