Planet Fitness Faces Unmet Commitment For Unit Openings Given The Macro Climate, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Stifel analyst Chris O'Cull reiterated a Buy rating on Planet Fitness Inc (PLNT) with a price target of $65.00. The company is expected to report its Q3 FY23 earnings on November 7, 2023. The analyst noted that Planet Fitness' domestic system added 23-28 net units during Q3, falling short of the +33 unit Street mean. This could lead to the company lowering its unit growth outlook again. Despite these challenges, the analyst remains positive on the shares due to several opportunities to improve new unit returns for franchisees.
October 31, 2023 | 6:31 pm
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Planet Fitness may fall short of its unit growth target, potentially leading to a downward revision of its growth outlook. However, the Stifel analyst maintains a positive view on the stock, citing opportunities for improved returns for franchisees.
The news directly pertains to Planet Fitness (PLNT) and its potential to miss its unit growth target. This could negatively impact the company's stock in the short term. However, the Stifel analyst's positive outlook, based on the potential for improved returns for franchisees, could offset this negative impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100