In the past year, Planet Fitness shares are up about 17%. On Thursday, the stock closed 3.24% lower at $89.62.
“Member Gains,” “Development 21 prior to directing reinforces key elements of our OW thesis and establishes favorable” 22. Acquiring a large franchise increases redemption operating leverage and should be cumulative EPS; Brian Harbor, equity analyst at Morgan Stanley, says shifts in the business mix but franchising will remain the main driver of growth.
Morgan Stanley gave a stock price forecast of $140 under the bullish scenario and $72 under the worst case scenario. Other stock analysts have also updated their stock price forecasts. Stifel raised the target price to $105 from $100. Quinn & Co. raised their target price to $110 from $100. DA Davidson raised the target price to $110 from $105.
Twelve analysts who have viewed stock valuations of Planet Fitness in the past three months forecast a 12-month average price of $102.08 with a high expectation of $115.00 and a low forecast of $85.00.
The average target price is a 13.90% change from the last price of $89.62. Of those 12 analysts, nine are rated “buy,” three are “hold” while none are rated “sell,” according to Tipranks.
“As the largest fitness club chain by system sales in the United States, Planet Fitness (PLNT) has strengthened its competitive position in recent years, coming through with no Covid-19 shutdown, while +20% of manufacturing capacity has been closed. Marketing to Morgan Stanleys Harbor added that marketing And technology and the scope of development is becoming increasingly important.
“Strong history of SSS growth driven by pricing, black card mix, marketing and density to drive traffic; Covid recovery likely extends into ’22 in our view, while unit growth should rebound back to +200/yr by ’23 driven by model Strong franchise and strong unit economics. Player value is less likely to threaten fitness at home. Poor performance against key benchmarks and an opponent at the highest pre-Covid levels represent a more compelling entry point.”
Technical analysis indicates that this is a good time to buy as the 100 day EMA and the 100-200 day MACD oscillator point to a strong selling opportunity.
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