William Blair analyst Sharon Zackfia has maintained their bullish stance on PLNT stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on several positive financial projections for Planet Fitness. She anticipates that the company’s third-quarter revenue will slightly surpass market expectations, with an estimated growth rate between 11.5% and 12.0%, compared to the consensus of around 11.0%. This optimistic outlook is driven by higher forecasts for franchised and equipment sales, despite a minor revenue growth setback due to the refranchising of eight company-owned locations in California.
Furthermore, Zackfia expects the revenue growth to be primarily fueled by high-margin franchised revenue, which should lead to an EBITDA margin expansion of 30 basis points to 42.4%, close to the consensus of 42.6%. This margin improvement is projected to result in a third-quarter earnings per share (EPS) of $0.75, marking a 17% increase and aligning with market expectations. These factors collectively contribute to her Buy rating for Planet Fitness’s stock.
According to TipRanks, Zackfia is a 4-star analyst with an average return of 6.8% and a 45.59% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Birkenstock Holding plc, Royal Caribbean, and Potbelly.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $119.00 price target.