TD Cowen on Planet Fitness (PLNT): 'Our Top Idea Is Warmed Up and Ready to Build Gains'

TD Cowen analyst Max Rakhlenko reiterated a Buy rating and $120.00 price target on Planet Fitness (NYSE: PLNT).

The analyst commented: "Our Top Idea Is Warmed Up and Ready to Build Gains. 4Q key metrics were broadly in-line with expectations, and we're upbeat by the CMO and CDO announcements. While early, we're encouraged by KPIs following the Classic Card price increase with better adds, churn, and very strong Black Card mix growth. Franchise economics are in better shape, and we expect openings to sequentially improve the next few years as PLNT marches to +200/year.

PLNT provided key 4Q and FY24 year-end metrics which were generally in-line with preICR expectations. (1) PLNT ended the year with 19.7mm members, implying +100k Q/Q. (2) System-wide comps for FY24 increased +5.0%, implying 4Q likewise in the 5.0% range which was at the high-end of the guide. (3) PLNT opened 150 gyms in FY24 which ended up at the high-end of the guide, implying +86 in 4Q which includes 77 franchise gyms. Also, PLNT announced appointments of Chip Ohlsson as Chief Development Officer (effective Jan 20) and Brian Povinelli as Chief Marketing Officer (effective Feb 10). With these two additions, Ms. Keating now has filled out all the key C-suite roles."

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 $101.55 yesterday.

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