Alexander Perry, an analyst from Bank of America Securities, reiterated the Buy rating on Planet Fitness (PLNT – Research Report). The associated price target is $115.00.
Alexander Perry has given his Buy rating due to a combination of factors influencing Planet Fitness’s recent performance and future prospects. The company reported a stronger-than-expected fourth-quarter earnings per share, driven by higher same-club sales and increased Black Card membership penetration. This growth in membership and sales indicates a positive trend in customer retention and attraction, which is crucial for the company’s ongoing success.
Additionally, Planet Fitness’s strategic adjustments in branding and marketing, including the introduction of new equipment and revised pricing strategies, are expected to resonate well with younger demographics. These efforts, coupled with improved franchisee economics and a promising outlook for unit expansion, suggest that the company is well-positioned for future growth. As a result, despite a slight reduction in the price objective, Perry maintains a positive outlook on Planet Fitness’s stock performance.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $115.00 price target.