On October 30, we said, “Look at Planet Fitness (SYM: PLNT) for example. For several years, the stock has taken off around the holidays. We saw it take off in late 2020, in late 2021, in late 2022, and again in 2023. We expect the same thing to happen again this year.”
Not only did the stock take off, but it did so faster than expected.
Since October 30, as PLNT traded at about $80, it’s now up to $94.17. All thanks to recent earnings and upgrades. For its third quarter, PLNT’s EPS of 64 cents beat by six cents. Revenue of $292.2 million, up 5.3% year over year beat by $6.95 million.
“We delivered solid results in the quarter, including more than 5 percent revenue growth, approximately 3 percent net income growth and approximately 10 percent Adjusted EBITDA growth, and are raising our outlook for certain key financial targets,” said Colleen Keating, Chief Executive Officer.
Helping, analysts at JPMorgan, Baird, Stifel and Jefferies raised their price targets on the stock.
Stifel, for one, raised its price target to $75 with a hold rating, citing the company’s implementation of higher Classic membership pricing. In fact, according to the company’s CEO, “We achieved a significant milestone by raising the price of our Classic Card membership to $15 for new members, marking the first increase in over 25 years, underscoring the tremendous value that we continue to offer our members.”
