Planet Fitness (NYSE:PLNT) shares rose around 3% intra-day on Thursday after Piper Sandler analysts increased their price target to $89 from $80, while maintaining their Overweight rating.
The analysts noted that Planet Fitness shares have rebounded recently due to several positive developments, including the appointment of a new CEO and adjustments in White Card pricing. Investors appear more confident in the company’s long-term prospects, although it may take a few more quarters for the new pricing strategy and the appointment of a new CFO to have a more sustained impact on the share price.
The analysts mentioned that while intermediate and longer-term confidence in Planet Fitness is improving, there are no heightened short-term expectations from investors. The analysts do not anticipate a significant beat in Q2 earnings or a guidance raise but feel that management’s guidance has prudently accounted for near-term conservatism. Management has acknowledged that cancellation trends remain elevated, real estate availability will take time to resolve, and pricing benefits will be gradual.
Overall, the analysts maintained a positive 12-month outlook for Planet Fitness, suggesting that Q2 results are unlikely to be a major stock-moving event.