Planet Fitness stock price target raised to $135 by TD Cowen

TD Cowen raised its price target on Planet Fitness (PLNT) to $135 from $125, maintaining a Buy rating, based on expectations for strong Q2 comparable sales growth and a potential 'beat-and-raise cycle.' The stock is trading near its 52-week high with a 14.85% YTD return, reflecting increasing analyst confidence—including recent target increases from Canaccord, JPMorgan, and Stifel—in the company's ongoing turnaround and attractive earnings growth prospects.

Analysis

Planet Fitness (PLNT) is experiencing a wave of bullish sentiment from Wall Street, led by TD Cowen's price target increase to $135.00 from $125.00. This optimism is predicated on expectations of strong second-quarter results, with TD Cowen forecasting comparable sales growth of 6.4% and suggesting the company may enter a 'beat-and-raise cycle.' This view is reinforced by recent price target hikes from Canaccord Genuity ($126), JPMorgan ($108), and an upgrade from Stifel ($120), indicating a strengthening consensus around the company's turnaround narrative. The stock reflects this positive momentum, trading near its 52-week high with a 14.85% year-to-date return. From a valuation perspective, PLNT trades at 19 times fiscal year 2 EBITDA, which is above its 10-year average of 17.5x but remains below its pre-pandemic peak of 22x, suggesting potential for further multiple expansion if growth accelerates. The company's fundamentals appear robust, with gross margins near 60% and an upcoming earnings release on August 12 serving as a key catalyst. Recent corporate actions, including a new 2025 Omnibus Incentive Plan, signal that management is actively pursuing its multiyear strategic turnaround.

Key Decisions for Investors

• Given the strong analyst consensus and expectations for a 'beat-and-raise' quarter, investors may view the current momentum as a signal to maintain or initiate long positions ahead of the August 12 earnings report.
• Monitor the upcoming comparable sales growth figures closely, as performance must justify the stock's valuation of 19x FY2 EBITDA and support a potential re-rating towards its pre-pandemic average of 22x.
• Recognize that with the stock trading near its 52-week high, elevated expectations create a key risk; a failure to meet or exceed guidance could trigger a significant price correction.