Planet Fitness (PLNT) PT Raised to $120 at TD Cowen on Upside Potential

TD Cowen analyst Max Rakhlenko raised the price target on Planet Fitness (NYSE: PLNT) to $120.00 (from $110.00) while maintaining a Buy rating.

The analyst said: "PLNT is our top idea for 2025 and we raise our price target to $120 as the company remains early in a multi-year turnaround with a compelling catalyst path which should drive upside to estimates and support valuation expansion. We model FY25E/FY26E EPS above Street on stronger comps & margins and think our estimates could have upside if openings accelerate in out years as unit economics improve.

We are constructive on PLNT's outlook for 2025 as the company has a compelling catalyst path and is in the early stages of a beat and raise cycle that should support valuation expansion. (1) We see upside to Street's FY25E and FY26E EPS on stronger comps supported by a successful transition to the new $15 Classic Card, sharper marketing, and floor layout. (2) We estimate 4-wall economics for new gyms will return closer to 2019 levels which should accelerate openings in FY25 and by FY26 we model 185 openings including 167 franchise which may be conservative. (3) We are encouraged by early comments from PLNT's new CEO as Ms. Keating is building a robust initiative roadmap which should support upside to comps, franchise profitability, and valuation."

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