Update shared on 27 Nov 2025
Fair value Increased 3.20%Planet Fitness saw its analyst price target rise by $4 to $128.94 as analysts pointed to accelerating revenue growth, improving margins, and positive financial updates from recent investor communications.
Analyst Commentary
Analysts have recently provided a range of bullish adjustments to Planet Fitness’s price targets, highlighting strong momentum in both financial performance and strategic execution. These viewpoints reflect a generally optimistic stance toward the company’s valuation and long-term prospects, though a handful of cautionary notes have also been raised regarding operational and market risks.
Bullish Takeaways- Several analysts have raised their price targets on Planet Fitness, citing accelerating momentum in revenue, robust comparable sales growth of 6.9%, and impressive member join trends even during seasonally weaker periods.
- Analysts note the company’s financial outlook through FY26 to FY28 sets an achievable bar for sustained EBITDA growth and earnings improvement, with outlooks exceeding current consensus estimates.
- Planet Fitness has benefited from structural shifts in consumer prioritization of health and wellness, particularly among younger demographics, supporting expectations for ongoing, durable membership growth.
- Recent results were ahead of expectations, and management’s guidance has been raised for same store sales and earnings, indicating underlying business strength and confidence in multi-year growth initiatives.
- Some analysts remain cautious about potential member churn and the challenge of sustaining the brand’s momentum amid evolving consumer preferences.
- There are concerns over the execution risks involved in large-scale modernization plans, particularly the enhancement of premium offerings such as the Black Card area.
- Questions have been raised about continued franchisee alignment and the effectiveness of shifting advertising spend, which could impact long-term operating efficiency.
What's in the News
- Raised earnings guidance for the year ending December 31, 2025. The company now expects approximately 11% revenue increase, up from the previous estimate of 10% (Corporate Guidance: Raised).
- From July 1 to September 30, 2025, repurchased 936,666 shares for $97.93 million. This completed the buyback of 1,502,411 shares totaling $150.01 million under the program announced on June 13, 2024 (Buyback Tranche Update).
- Announced a multi-year partnership with Hockey Canada, making Planet Fitness the official fitness partner and launching new club initiatives and athlete collaborations across Canada (Client Announcements).
- Held an Analyst/Investor Day event, providing updates and insights to the investment community (Analyst/Investor Day).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $124.94 to $128.94.
- Discount Rate has fallen modestly, moving from 9.01% to 8.96%.
- Revenue Growth projection has increased marginally, changing from 13.02% to 13.28%.
- Net Profit Margin is now higher, up from 19.19% to 19.72%.
- Future P/E has edged down slightly, from 38.38x to 38.21x.
Disclaimer
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