Planet Fitness, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Max Rakhlenko from TD Cowen maintained a Buy rating on the stock and has a $135.00 price target.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Max Rakhlenko has given his Buy rating due to a combination of factors that suggest a strong growth trajectory for Planet Fitness. The company is benefiting from favorable market conditions that are expanding its total addressable market, driven by a more health-conscious Gen-Z demographic. This demographic shift is expected to increase gym memberships, providing a solid foundation for future growth.
Additionally, Rakhlenko highlights several catalysts that could enhance Planet Fitness’s financial performance. These include a planned increase in the Black Card membership price, which is anticipated to boost comparable sales, and an improved marketing strategy that should accelerate member growth and reduce churn. Furthermore, the company is expected to see enhanced unit economics, leading to more gym openings. These factors collectively support the expectation of earnings per share surpassing market estimates, reinforcing the Buy rating.
According to TipRanks, Rakhlenko is a 4-star analyst with an average return of 6.4% and a 56.48% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, AutoZone, and O’Reilly Auto.
In another report released on November 17, Canaccord Genuity also reiterated a Buy rating on the stock with a $139.00 price target.