Baird sees room for Planet Fitness to raise entry level pricing

Baird analyst Jonathan Komp notes that Planet Fitness has historically resisted moving up its $10 per month “white card” membership, but is currently testing a new pricing model that the company could roll out more broadly. After having recently surveyed the domestic system for Crunch, which Baird calls “the largest direct gym competitor” to Planet, the firm argues that the “much higher all-in entry price” for Crunch should give Planet confidence in bringing up the low end of its pricing. The firm keeps an Outperform rating and $87 price target on Planet Fitness shares.