What Planet Fitness (PLNT)’s Analyst Support and Franchise Giving Signal About Management’s Turnaround Strategy

• TD Cowen recently reiterated its positive outlook for Planet Fitness, highlighting strong membership growth and improved business fundamentals under new management, despite higher-than-expected membership cancellations.
• Meanwhile, a coalition of major Planet Fitness franchise groups raised over US$62,700 for St. Jude Children’s Research Hospital, emphasizing the brand’s ongoing focus on community engagement.
• We’ll explore how analyst confidence in management’s turnaround efforts could reshape the investment narrative for Planet Fitness moving forward.

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Planet Fitness Investment Narrative Recap

To own shares in Planet Fitness, you need to believe that its highly scalable, value-focused business model can outpace competitive pressures and member attrition through steady club expansion and high engagement among younger demographics. The recent analyst reiteration of a positive outlook, in light of strong membership growth but elevated cancellations, supports the view that short-term results hinge on membership trends and management’s ability to address churn; for now, this upswing in confidence does not materially shift the primary catalyst or risk facing the business.

One recent development with direct relevance is TD Cowen’s reaffirmed optimism based on improved fundamentals under new leadership, even as the company faces persistently high membership cancellations from the rollout of click-to-cancel online functionality. This draws attention back to how effectively Planet Fitness can stabilize member retention while pursuing expansion, central to both near-term momentum and the long-term thesis.

But as membership trends show signs of strain, investors should be alert to the risk that persistently high online cancellations could…

Read the full narrative on Planet Fitness (it’s free!)

Planet Fitness is expected to reach $1.6 billion in revenue and $312.8 million in earnings by 2028. This outlook is based on an assumed 11.6% annual revenue growth rate and a $123.8 million increase in earnings from the current $189.0 million.

Uncover how Planet Fitness’ forecasts yield a $122.81 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community estimate Planet Fitness’s fair value between US$37.05 and US$122.81, showing a wide spectrum of expectations. You might consider how elevated member attrition cited by analysts could influence future growth, making it valuable to review these different viewpoints for a fuller picture.

Explore 3 other fair value estimates on Planet Fitness – why the stock might be worth as much as 18% more than the current price!

Build Your Own Planet Fitness Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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