Piper Sandler Increases Planet Fitness Price Target to $89, Citing Long-Term Confidence
Planet Fitness (NYSE:PLNT) shares rose around 3% intra-day on Thursday after Piper Sandler analysts increased their price target to $89 from $80, while maintaining their Overweight rating.
The analysts noted that Planet Fitness shares have rebounded recently due to several positive developments, including the appointment of a new CEO and adjustments in White Card pricing. Investors appear more confident in the company's long-term prospects, although it may take a few more quarters for the new pricing strategy and the appointment of a new CFO to have a more sustained impact on the share price.
The analysts mentioned that while intermediate and longer-term confidence in Planet Fitness is improving, there are no heightened short-term expectations from investors. The analysts do not anticipate a significant beat in Q2 earnings or a guidance raise but feel that management's guidance has prudently accounted for near-term conservatism. Management has acknowledged that cancellation trends remain elevated, real estate availability will take time to resolve, and pricing benefits will be gradual.
Overall, the analysts maintained a positive 12-month outlook for Planet Fitness, suggesting that Q2 results are unlikely to be a major stock-moving event.
| Symbol | Price | %chg |
|---|---|---|
| 4661.T | 3095 | -1.23 |
| 7832.T | 4797 | -3.19 |
| 081660.KS | 36050 | 0.55 |
| 7309.T | 19320 | -4.06 |
Planet Fitness Receives Price Target from D.A. Davidson
- Linda Bolton Weiser of D.A. Davidson sets a price target of $62 for Planet Fitness , indicating a potential downside.
- Planet Fitness announces a $280 million accelerated share repurchase agreement, showcasing its commitment to shareholder value.
- The company's stock performance and strategic financial management highlight its resilience and growth prospects in the competitive fitness industry.
Linda Bolton Weiser of D.A. Davidson set a price target of $62 for Planet Fitness (NYSE:PLNT) on June 13, 2024, suggesting a potential downside of approximately 14.48% from its trading price at that time of $72.5. This valuation reflects a cautious outlook on the company's future stock performance, as detailed in the report "DA Davidson Reiterates Neutral Rating on Planet Fitness (PLNT)," published by StreetInsider. Planet Fitness, headquartered in Hampton, New Hampshire, is a prominent player in the fitness industry, known for its low-cost membership model and widespread gym locations.
The company's strategic financial management is evident in its recent announcement of entering into a $280 million accelerated share repurchase agreement (ASR Agreement) with Citibank, N.A. This move is part of a broader $500 million share repurchase authorization revealed on November 8, 2022, demonstrating Planet Fitness's commitment to enhancing shareholder value. By the time of this announcement, the company had about $355 million remaining under its 2022 Share Repurchase Program, indicating a proactive approach to capital allocation.
Under the ASR Agreement, Planet Fitness will pay Citibank $280 million in cash, receiving approximately 3.1 million shares of its Class A common stock in return. This initial share count represents about 80% of the total shares the company expects to repurchase under this agreement. Such a significant buyback plan underscores the company's confidence in its long-term growth prospects and its dedication to returning value to its shareholders.
The stock's performance, with a slight increase to $72.5, reflects a stable market position, supported by a trading volume of 1,810,854 shares. The company's market capitalization of approximately $6.35 billion, along with its stock fluctuating between a low of $44.13 and a high of $75.86 over the past year, showcases its resilience and potential for growth in the competitive fitness industry. This financial maneuvering and stock performance provide a broader context to Weiser's price target, highlighting the intricate balance between investor expectations and the company's strategic initiatives to bolster shareholder value.
Planet Fitness Slashed to Hold After CEO Chris Rondeau’s Exit
Jefferies analysts downgraded Planet Fitness (NYSE:PLNT) from Buy to Hold and lowered the price target from $90 to $56 per share. The downgrade comes in the wake of a surprising leadership change at Planet Fitness, where CEO Chris Rondeau was ousted from his position. Following this announcement, the company's shares dropped by more than 15% on Friday.
The analysts expressed concerns about the impact of this leadership change, higher interest rates, and ongoing inflationary pressures on the company's near-term growth potential. While interim CEO Craig Benson has a history with Planet Fitness, serving on its board since 2017 and owning a franchise since 2012, the analysts believe that this leadership transition introduces uncertainty regarding the company's future growth prospects.
