William Blair analyst Sharon Zackfia has maintained their bullish stance on PLNT stock, giving a Buy rating yesterday.
Sharon Zackfia’s rating is based on several positive indicators for Planet Fitness. She anticipates a double-digit growth in earnings per share (EPS) for the first quarter, driven by an expected revenue increase of 13% to 14%. This growth is attributed to higher sales projections in the equipment segment, which is expected to see over 45% growth due to more evenly distributed replacement equipment sales throughout the year.
Despite a projected contraction in EBITDA margins due to the growth in the lower-margin equipment business, Zackfia estimates a first-quarter EPS increase of 11%. Additionally, she forecasts a healthy comparable sales growth of approximately 5.5%, aligning closely with market expectations. These factors combined contribute to her Buy rating for Planet Fitness, reflecting confidence in the company’s financial performance and growth prospects.
According to TipRanks, Zackfia is a 5-star analyst with an average return of 12.0% and a 50.23% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Lululemon Athletica, and Royal Caribbean.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $110.00 price target.