Morgan Stanley trims Planet Fitness price target, says ‘buy the dip’

Morgan Stanley analyst Megan Alexander lowered the firm’s price target on Planet Fitness to $79 from $83 and keeps an Overweight rating on the shares, stating that the moderating same-store sales outlook driving questions about the algorithm and the “unexpected” CFO resignation likely weighed on the stock yesterday. However, separating the “forest from the trees,” the firm would focus on Planet’s story being based on re-accelerating unit growth, and given that it sees the drivers of this intact, the firm remain buyers of the shares.