Planet Fitness price target raised to $89 from $84 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Planet Fitness (PLNT) to $89 from $84 and keeps an Overweight rating on the shares. Investor sentiment has turned more bearish amid concerns on the development outlook and weak membership trends, notes the analyst, who agrees that both placements and net member additions “could disappoint” in Q3. However, while lowering Q3 estimates, the firm see partial offsets from a stronger price flow-through and sees minimal risk to full-year estimates, adds the analyst, who would be a buyer of any post-EPS weakness.