Max Rakhlenko, an analyst from TD Cowen, maintained the Buy rating on Planet Fitness (PLNT – Research Report). The associated price target remains the same with $125.00.
Max Rakhlenko has given his Buy rating due to a combination of factors that highlight Planet Fitness’s strong positioning in the market. The long-term bullish outlook for the company remains solid, and it is well-prepared to navigate potential economic challenges, such as tariffs and a softer macroeconomic environment. Despite a potentially muted immediate stock reaction, the company is expected to perform well throughout the year, setting the stage for future earnings beats and upward revisions.
Rakhlenko notes that the sentiment around Planet Fitness is positive, with the stock being underappreciated despite its recent performance. The company’s pricing strategy is proving effective, and concerns over the click-to-cancel feature are diminishing. Additionally, Planet Fitness’s value proposition is attractive in an inflationary environment, and its strategic moves, such as manufacturing equipment in Vietnam, help mitigate tariff impacts. These factors, combined with the company’s focus on first-time gym-goers and its competitive positioning against peers like Crunch, support the Buy rating.
According to TipRanks, Rakhlenko is a 3-star analyst with an average return of 3.3% and a 48.97% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as O’Reilly Auto, Planet Fitness, and Lowe’s.
In another report released on April 16, Canaccord Genuity also maintained a Buy rating on the stock with a $120.00 price target.