Planet Fitness (PLNT – Research Report), 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 $125.00 price target.
Max Rakhlenko has given his Buy rating due to a combination of factors that suggest Planet Fitness has potential for growth despite some current uncertainties. The company’s guidance has created some confusion, particularly with the implementation of the Click To Cancel feature, which is expected to be fully rolled out by April. This implementation is anticipated to have a conservative impact on the company’s performance, with management expecting only a temporary increase in churn.
Despite the noise surrounding the guidance, Rakhlenko believes that the company’s fundamentals remain strong. The initial guidance for new openings is solid, and the company’s price increase strategy is proving effective, with franchisee economics improving. Additionally, the management’s plan to re-franchise their Spain gyms in 2025 and the potential for share repurchases provide further upside. Overall, Rakhlenko sees the current share price as potentially near a floor, with the long-term bull thesis still intact.
According to TipRanks, Rakhlenko is a 4-star analyst with an average return of 11.9% and a 60.14% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, O’Reilly Auto, and Tractor Supply.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $115.00 price target.