Planet Fitness, 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 $135.00 price target.
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Max Rakhlenko has given his Buy rating due to a combination of factors, including Planet Fitness’s strong third-quarter performance and promising future prospects. The company’s comparable sales exceeded expectations, driven by robust rate growth and a better-than-anticipated membership base. Churn rates are stabilizing, which is expected to continue, and gross membership additions remain strong.
Additionally, the company’s focus on the Gen-Z demographic is seen as a long-term growth driver, as this group is joining at younger ages and showing potential for increased retention over time. The upcoming Analyst Day is anticipated to be a positive catalyst, with expectations for discussions on international expansion, revenue opportunities, and a multi-year earnings growth framework. These factors collectively support the optimistic outlook and the Buy rating for Planet Fitness’s stock.