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The latest tweak to the Planet Fitness fair value estimate keeps the price target effectively steady at about US$130, with the model shifting only slightly from US$130.41. That kind of small move lines up with recent Street commentary, where analysts are fine tuning assumptions and adjusting targets by just US$1 to US$5 rather than rethinking the story. As you read on, you will see how these incremental changes can help you track the evolving narrative around the stock.
Morgan Stanley lifted its Planet Fitness price target by US$5 in mid January. This suggests the firm sees enough support in the story to justify a higher fair value range rather than a reset lower.
Canaccord followed with a US$1 increase to its target later in January, reinforcing the idea that recent inputs into models are fine tuning around an existing constructive view instead of a major rethink.
BofA appeared alongside Planet Fitness in the same research flow when it trimmed Life Time Group’s target by US$2. This serves as a reminder that not all fitness names are treated the same and that peers can face pressure even when PLNT targets are edging up.
The small size of the Planet Fitness target moves at Morgan Stanley and Canaccord also signals that some analysts may see less room for large valuation shifts based on the current information set. This can limit how much upside they are willing to model in the near term.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!
NYSE:PLNT 1-Year Stock Price Chart
We’ve flagged 2 risks for Planet Fitness. See which could impact your investment.
Planet Fitness plans to expand in northern Mexico through a new franchise agreement with Impulso Gym, adding clubs in Tijuana and Mexicali.
The company currently operates 47 locations across 14 states in Mexico, reflecting an established footprint in that market.
Impulso Gym is a joint venture between Great American Hospitality, which runs brands such as Applebee’s, Little Caesars, and Wendy’s in Mexico, and Fernando Sada, a contractor for the first Planet Fitness clubs in Monterrey.
In Mexico, Classic Card memberships start at MXN 279 per month and PF Black Card memberships start at MXN 499 per month. Black Card members receive global club access, guest privileges, and amenities including massage chairs, haircuts, and daily blow dry services.
Story Continues
Fair value adjusted to US$130.0 from US$130.41.
Revenue growth assumption set at 12.84% from 13.35%.
Net profit margin assumption set at 20.02% from 19.67%.
Future P/E multiple set at 39.06x from 38.90x.
Discount rate set at 9.12% from 9.16%.
Narratives tie Planet Fitness’s business story to a set of explicit assumptions about future earnings, margins, and fair value, and they refresh as new data or news comes in. They help you see how specific growth drivers and risks feed into the numbers analysts are using.
Head over to the Simply Wall St Community and follow the Narrative on Planet Fitness to stay up to date on:
How expansion into younger demographics, including Gen Z and High School Summer Pass participants, is shaping Planet Fitness’s addressable membership base.
What club format changes, such as more strength equipment and redesigned layouts, could mean for member satisfaction, retention, and pricing flexibility.
Key risks around higher member attrition from online cancellations, heavy reliance on new club openings, franchisee health, and rising competition from boutique studios and other value gyms.
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.
Companies discussed in this article include PLNT.
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