In a report released today, Max Rakhlenko from TD Cowen maintained a Buy rating on Planet Fitness, with a price target of $135.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Max Rakhlenko’s rating is based on a combination of factors that suggest a positive outlook for Planet Fitness despite current stock volatility. He acknowledges the challenges posed by elevated churn rates and limited visibility into third-quarter comparisons but emphasizes the importance of management’s commentary on churn normalization. Rakhlenko believes that while churn has experienced temporary spikes, it is on a path to normalization, which is crucial for the company’s long-term growth prospects.
Additionally, Rakhlenko notes that despite the noise around churn, the company continues to experience strong gross additions, which he expects to persist as the total addressable market expands. He also addresses the stock’s volatility, attributing it to debates around third-quarter churn and management’s upcoming presentation at the Analyst Day. Rakhlenko suggests that even if management provides a conservative outlook, it could present a unique buying opportunity, as he sees potential upside in the company’s future performance.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $119.00 price target.