Latest news with #BlackCardSpa
Yahoo
22-05-2025
- Business
- Yahoo
Stifel Upgrades Planet Fitness (PLNT) Stock to Buy, Raises PT
On May 22, Stifel analysts upped Planet Fitness, Inc. (NYSE:PLNT)'s stock from 'Hold' to 'Buy,' increasing the price objective to $120 from the prior target of $82. The upgrade comes after an evaluation of its recent performance and expected growth catalysts. The analysts have noted stabilized gross joins and numerous factors that can fuel comparable sales to mid-to-high-single-digit growth in the upcoming years. Planet Fitness, Inc. (NYSE:PLNT) continues to focus on improving marketing strategies, which analysts opine can be optimized to see better results. A smiling person in sports gear testing out a piece of new fitness equipment. Additionally, the firm expects that Planet Fitness, Inc. (NYSE:PLNT) will increase its Black Card pricing. This can result in a 3% - 4%-point benefit to its comparable sales (comps). Its efforts focused on enhancing the Black Card Spa experience have been regarded as a favourable move. Stifel upped its comp and unit growth estimates for Planet Fitness, Inc. (NYSE:PLNT) as it anticipates sustained member growth and a multi-year pricing tailwind to fuel performance. Because of the strength and durability of its model, the company delivered healthy growth in Q1 2025 despite higher volatility in the macroeconomic environment. Its total revenue went up by 11.5% YoY to $276.7 million. Planet Fitness, Inc. (NYSE:PLNT) is engaged in franchising and operating fitness centers under the Planet Fitness brand. While we acknowledge the potential of PLNT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLNT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None.
CNBC
22-05-2025
- Business
- CNBC
This fitness stock is a buy as sales momentum is set to continue, Stifel says
Growth in Planet Fitness is nowhere near done, according to Stifel. Analyst Chris O'Cull upgraded shares of the gym chain to buy from hold and raised his price target to $120 from $82. That new objective suggest shares of Planet Fitness could jump roughly 15% from their latest close. The stock has rallied 10% this month after the company reaffirmed its full-year earnings per share, revenue and system-wide same club sales growth. "Recent results suggest gross joins have stabilized, and we believe there are several potential catalysts to keep comparable sales in the mid-to-high single-digit range over the next couple of years," O'Cull said. "The company has improved its marketing efforts, but we believe there is considerable runway for further improvement," O'Cull continued, referring to advertising campaigns he has found encouraging given their messaging that emphasizes Planet Fitness' value as an affordable and nonjudgmental gym. PLNT 1Y mountain Planet Fitness stock performance. According to O'Cull, Planet Fitness locations could see steady improvement in net new unit growth over the next few years given strong top-line performance and ongoing efforts to reduce investment costs. Fueling its strong growth potential is the company's ability to the pricing of its Black Card monthly membership plan from $24.99 to $29.99 later this year, the analyst noted. Planet Fitness also has "promising avenues" to improve the overall value proposition of its Black Card Spa, by expanding potential upgrades to locations' spa areas with the availability of spray tanning, red light therapy and cryotherapy services. "We believe tests to upgrade the Black Card Spa are yielding positive results and could provide new reasons to join. Relative to other consumer-facing segments, Planet's low-cost membership model should also prove relatively resilient in the event of a downturn in consumer spending," O'Cull said. O'Cull also pointed out that efforts to include gym membership costs under individuals' Health Savings Accounts could drive memberships for the fitness industry, potentially benefitting Planet Fitness.
