PLANET FITNESS INC: MORGAN STANLEY LOWERS RATING TO EQUAL-WEIGHT FROM OVERWEIGHT
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy PLNT?
Source: moomoo
Planet Fitness Announcement: Planet Fitness has announced a new initiative aimed at promoting equal weight distribution in fitness routines.
Morgan Stanley Involvement: The initiative is supported by Morgan Stanley, highlighting a partnership focused on health and wellness in the fitness industry.
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Analyst Views on PLNT
Wall Street analysts forecast PLNT stock price to rise
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 44.010
Low
120.00
Averages
133.25
High
185.00
Current: 44.010
Low
120.00
Averages
133.25
High
185.00
About PLNT
Planet Fitness, Inc. is a franchisor and operator of fitness centers in the world. The Company operates in three segments: Franchise, Corporate-owned club, and Equipment. The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The Corporate-owned clubs segment includes operations with respect to all Corporate-owned clubs throughout the United States, Canada, and Spain. The Equipment segment includes the sale of equipment to franchisee-owned clubs. The Company's subsidiaries operate three lines of business, which include licensing and selling franchises under the Planet Fitness trade name, owning, and operating fitness centers, and selling fitness-related equipment to franchisee-owned stores. It operates 2,735 clubs in all 50 states: the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Planet Fitness Growth Slows, Investors Urged to Exercise Caution
- Earnings Decline: Planet Fitness reported a 22% year-over-year revenue increase to $337 million in Q1, with net income rising 23% to $52 million; however, the stock has plummeted 58% due to lowered sales and earnings guidance.
- Membership Slowdown: New member sign-ups fell by 36% year-over-year, and the decision to keep the Black Card membership price steady may hinder future revenue growth, leading to a revised 2026 revenue growth forecast of 7%, down from 9%.
- Market Overreaction: Despite the stock's significant drop to its lowest level since 2020, the current trailing P/E ratio is 17, and the forward P/E has decreased to 13, indicating that the market's pessimistic outlook on the company's long-term growth may be overly cautious.
- Expansion Plans: Facing challenges, Planet Fitness still aims to open 180 to 190 new clubs and expects 150 to 160 franchise locations to purchase new equipment, suggesting that the company is actively expanding and may recover growth in the future.
See More
Planet Fitness Earnings Report Triggers Stock Volatility
- Earnings Performance Analysis: Planet Fitness reported a 22% year-over-year revenue increase to $337 million in Q1, and despite a 101% rise in costs, net income surged 23% to $52 million, indicating resilience in revenue growth, although high costs raised market concerns.
- Market Reaction: The stock plummeted nearly 58% year-to-date due to management's decision not to raise the Black Card membership price and a 36% drop in new member sign-ups, leading to a downward revision of 2026 revenue growth expectations to 7%, which has shaken investor confidence.
- Future Outlook: Despite anticipated revenue slowdown and net income decline, Planet Fitness plans to open 180 to 190 new clubs, demonstrating its intent to expand, which could enhance its competitive position in the market.
- Valuation Analysis: With the forward P/E ratio now at 13, despite the market's pessimistic outlook on the company's growth, this valuation level may limit downside risk for the stock, suggesting a potential rebound if market sentiment proves overly negative.
See More
Planet Fitness Faces Growth Outlook Reset
- Q1 Performance Decline: Planet Fitness reported weaker-than-expected sign-ups in Q1, leading to a reset in its growth outlook, which could negatively impact market share and investor confidence.
- Marketing Strategy Reevaluation: The decline in membership may prompt the company to reassess its marketing strategies to attract new members, aiming to restore growth momentum and enhance brand competitiveness.
- Financial Impact Emerging: The disappointing registration figures could result in slower revenue growth in the future, potentially affecting profitability and shareholder returns, prompting investors to closely monitor upcoming earnings reports.
- Intensifying Industry Competition: Amidst increasing competition in the fitness industry, Planet Fitness must implement effective measures to address market challenges and maintain its leading position in the sector.
See More
Consumer Confidence Decline Impacts Stock Market
- Market Volatility: Shares of several consumer-focused companies plummeted yesterday, with Planet Fitness down over 30%, marking its largest one-day loss ever, indicating market concerns about consumer health that could hinder overall economic recovery.
- Shake Shack Earnings Miss: Shake Shack's stock dropped more than 28% following an operating loss and earnings miss in Q1, reflecting weak consumer spending that may pressure future performance.
- Job Data Expectations: The U.S. is expected to add 55,000 jobs in April, with the unemployment rate holding steady at 4.3%, a figure that could sway market sentiment, as JPMorgan's trading desk warns of potential significant market swings.
- Cloudflare Layoffs Impact: Cloudflare announced it would cut over one-fifth of its workforce, leading to a 15% pre-market drop in its stock, despite beating Q1 earnings expectations, indicating the company's cautious outlook on future market conditions.
See More
Consumer Confidence Decline Impacts Stock Market
- Market Volatility: Shares of several consumer-focused companies plummeted, with Planet Fitness down over 30%, marking its largest one-day loss ever, reflecting market concerns about consumer health that could hinder overall economic recovery.
- Job Data Expectations: The U.S. is expected to add 55,000 jobs in April, a significant slowdown from March, with the unemployment rate projected to hold steady at 4.3%, potentially triggering significant market swings as investors await the employment report.
- Geopolitical Tensions: Hostilities in the Strait of Hormuz have reignited, with the U.S. and Iran exchanging fire, and although Trump claims the ceasefire remains intact, the escalating situation could negatively impact oil prices and market sentiment.
- Cloudflare Layoffs: Cloudflare announced it would cut over 20% of its workforce, leading to a 15% drop in shares before the bell, despite beating first-quarter earnings expectations, indicating a significant shift in the company's future direction that may affect investor confidence.
See More
PLANET FITNESS INC: MORGAN STANLEY LOWERS RATING TO EQUAL-WEIGHT FROM OVERWEIGHT
Planet Fitness Announcement: Planet Fitness has announced a new initiative aimed at promoting equal weight distribution in fitness routines.
Morgan Stanley Involvement: The initiative is supported by Morgan Stanley, highlighting a partnership focused on health and wellness in the fitness industry.
See More
Planet Fitness Growth Slows, Investors Urged to Exercise Caution
- Earnings Decline: Planet Fitness reported a 22% year-over-year revenue increase to $337 million in Q1, with net income rising 23% to $52 million; however, the stock has plummeted 58% due to lowered sales and earnings guidance.
- Membership Slowdown: New member sign-ups fell by 36% year-over-year, and the decision to keep the Black Card membership price steady may hinder future revenue growth, leading to a revised 2026 revenue growth forecast of 7%, down from 9%.
- Market Overreaction: Despite the stock's significant drop to its lowest level since 2020, the current trailing P/E ratio is 17, and the forward P/E has decreased to 13, indicating that the market's pessimistic outlook on the company's long-term growth may be overly cautious.
- Expansion Plans: Facing challenges, Planet Fitness still aims to open 180 to 190 new clubs and expects 150 to 160 franchise locations to purchase new equipment, suggesting that the company is actively expanding and may recover growth in the future.
See More
Planet Fitness Earnings Report Triggers Stock Volatility
- Earnings Performance Analysis: Planet Fitness reported a 22% year-over-year revenue increase to $337 million in Q1, and despite a 101% rise in costs, net income surged 23% to $52 million, indicating resilience in revenue growth, although high costs raised market concerns.
- Market Reaction: The stock plummeted nearly 58% year-to-date due to management's decision not to raise the Black Card membership price and a 36% drop in new member sign-ups, leading to a downward revision of 2026 revenue growth expectations to 7%, which has shaken investor confidence.
- Future Outlook: Despite anticipated revenue slowdown and net income decline, Planet Fitness plans to open 180 to 190 new clubs, demonstrating its intent to expand, which could enhance its competitive position in the market.
- Valuation Analysis: With the forward P/E ratio now at 13, despite the market's pessimistic outlook on the company's growth, this valuation level may limit downside risk for the stock, suggesting a potential rebound if market sentiment proves overly negative.
See More
Planet Fitness Faces Growth Outlook Reset
- Q1 Performance Decline: Planet Fitness reported weaker-than-expected sign-ups in Q1, leading to a reset in its growth outlook, which could negatively impact market share and investor confidence.
- Marketing Strategy Reevaluation: The decline in membership may prompt the company to reassess its marketing strategies to attract new members, aiming to restore growth momentum and enhance brand competitiveness.
- Financial Impact Emerging: The disappointing registration figures could result in slower revenue growth in the future, potentially affecting profitability and shareholder returns, prompting investors to closely monitor upcoming earnings reports.
- Intensifying Industry Competition: Amidst increasing competition in the fitness industry, Planet Fitness must implement effective measures to address market challenges and maintain its leading position in the sector.
See More
Consumer Confidence Decline Impacts Stock Market
- Market Volatility: Shares of several consumer-focused companies plummeted yesterday, with Planet Fitness down over 30%, marking its largest one-day loss ever, indicating market concerns about consumer health that could hinder overall economic recovery.
- Shake Shack Earnings Miss: Shake Shack's stock dropped more than 28% following an operating loss and earnings miss in Q1, reflecting weak consumer spending that may pressure future performance.
- Job Data Expectations: The U.S. is expected to add 55,000 jobs in April, with the unemployment rate holding steady at 4.3%, a figure that could sway market sentiment, as JPMorgan's trading desk warns of potential significant market swings.
- Cloudflare Layoffs Impact: Cloudflare announced it would cut over one-fifth of its workforce, leading to a 15% pre-market drop in its stock, despite beating Q1 earnings expectations, indicating the company's cautious outlook on future market conditions.
See More
Consumer Confidence Decline Impacts Stock Market
- Market Volatility: Shares of several consumer-focused companies plummeted, with Planet Fitness down over 30%, marking its largest one-day loss ever, reflecting market concerns about consumer health that could hinder overall economic recovery.
- Job Data Expectations: The U.S. is expected to add 55,000 jobs in April, a significant slowdown from March, with the unemployment rate projected to hold steady at 4.3%, potentially triggering significant market swings as investors await the employment report.
- Geopolitical Tensions: Hostilities in the Strait of Hormuz have reignited, with the U.S. and Iran exchanging fire, and although Trump claims the ceasefire remains intact, the escalating situation could negatively impact oil prices and market sentiment.
- Cloudflare Layoffs: Cloudflare announced it would cut over 20% of its workforce, leading to a 15% drop in shares before the bell, despite beating first-quarter earnings expectations, indicating a significant shift in the company's future direction that may affect investor confidence.
See More
PLANET FITNESS INC: MORGAN STANLEY LOWERS RATING TO EQUAL-WEIGHT FROM OVERWEIGHT
Planet Fitness Announcement: Planet Fitness has announced a new initiative aimed at promoting equal weight distribution in fitness routines.
Morgan Stanley Involvement: The initiative is supported by Morgan Stanley, highlighting a partnership focused on health and wellness in the fitness industry.
See More
