Planet Fitness short report from TBC ‘not hard-hitting’, says DA Davidson

DA Davidson analyst Linda Bolton Weiser keeps her Buy rating and $99 price target on Planet Fitness following yesterday’s short report from The Bear Cave, or TBC. The analyst notes that TBC cited its research from Freedom of Information Act requests, which highlighted a pattern of overbilling, fraudulent transactions, excessive fees, and uncancellable memberships. Weiser adds however that the short thesis was "light on fundamentals" and fails to mention all the positives for the company, including higher workout frequency, average per-gym membership reaching pre-pandemic levels, improving member retention, and surging free cash flow. The analyst further contends that the brand concept for Plant Fitness gives the company a "favorable positioning for long-term growth".