Planet Fitness price target raised to $76 from $70 at Macquarie

Macquarie analyst Paul Golding raised the firm’s price target on Planet Fitness to $76 from $70 and keeps an Outperform rating on the shares. The company’s Q1 results were mixed, with revenue missing and earnings beating market expectations, the analyst tells investors in a research note. The firm says the “long-awaited” Classic price increase, to $15 from $10 per month, drove the shares higher post earnings. The move could deliver internal rate of return improvement for franchisees that splits the difference between pre-/post-COVID levels, contends Macquarie. It believes pricing should drive higher earnings for Planet Fitness.