DA Davidson Downgrades Planet Fitness (PLNT) to Neutral, 'Concerns Over 2023 Store Openings'

DA Davidson analyst Linda Bolton Weiser downgraded Planet Fitness (NYSE: PLNT) from Buy to Neutral with a price target of $87.00.

The analyst comments "PLNT has outperformed in the last five months (up ~50% vs. S&P 500 +12%) despite no improvement in two key fundamental negatives: (1) extended lead times for HVAC systems; and (2) slower franchise opening pace vs. pre-COVID due to cost inflation. With these headwinds continuing, we think the Street's 190 openings is a stretch (we're at 176) and that 2023 guidance is unlikely to exceed consensus EBITDA +18.4% (long-term algorithm is high-teens growth). Due to continuing store growth challenges, we're cutting our target P/E to 35x (mid-point of the 3-year range) from 40x, our PT to $87 from $99, and our rating to NEUTRAL from Buy."

For an analyst ratings summary and ratings history on Planet Fitness click here. For more ratings news on Planet Fitness click here.

Shares of Planet Fitness closed at $84.18 yesterday.

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