Stifel upgrades Planet Fitness to Buy with gross joins stabilized

Stifel analyst Chris O’Cull last night upgraded Planet Fitness (PLNT) to Buy from Hold with a price target of $120, up from $82. The company’s recent results suggest gross joins have stabilized, and there are several potential catalysts to keep comparable sales in the mid-to-high single-digit range over the next couple of years, the analyst tells investors in a research note. The firm says Planet Fitness has improved its marketing efforts, but there is “considerable runway for further improvement.” Stifel also believes the company will raise black card pricing, which could have a 3%-4%-point benefit to comps.