Stock Price & Analysis

Buy PLNT stock as strong Q4 results and positive analyst sentiment suggest growth potential.

Planet Fitness (PLNT) is expected to reach a price target of $110 - $115 by the end of 2025, driven by strong revenue growth and positive analyst sentiment. The stock is currently trading at $93.81 and has shown resilience despite market volatility. Analysts have upgraded their ratings, citing the company's ability to maintain growth and its attractive valuation.

The S1 support level for PLNT Stock is $91.28 ,The R1 resistant level for PLNT Stock is $96.98.

As of the end of day on 2025-03-14, the price of PLNT Stock was $95.51.

The target price for PLNT Stock according to analyst rating is 110.54, with the highest price target at 150.00 and the lowest at 82.00. Analysts have a Strong Buy rating on PLNT Stock overall.

The market cap of PLNT is $8.1B.

Analysis and Insights

Planet Fitness (PLNT) appears overvalued based on its current valuation metrics and market expectations. Here's the analysis:

1. Valuation Metrics:

   • The stock trades at a P/E ratio of 49.32 (Q4 2024) and EV/EBITDA of 20.51, both above industry averages, suggesting a premium valuation.
   • The price-to-sales (P/S) ratio of 7.18 indicates investors are paying a high price per dollar of revenue.

2. Revenue Growth:

   • Q4 2024 revenue grew 19.4% year-over-year to $340.45 million, beating estimates, driven by franchise demand and equipment sales.
   • System-wide same-club sales rose 5.5%, and the company added 86 new clubs, expanding its total to 2,722 locations.

3. Analyst Sentiment:

   • Analysts have mixed views, with a consensus Strong Buy rating but recent price target cuts. RBC Capital lowered its target to $110 from $120, citing weaker same-store sales guidance and no EBITDA leverage in 2025.

4. Stock Performance:

   • The stock is trading near its 52-week high of $110, reflecting high market expectations. However, its valuation multiples are stretched compared to historical levels.

5. Risks:

   • Elevated investments without EBITDA leverage in 2025 could pressure margins.
   • Same-store sales growth of 5%-6% in 2025 may not justify the current valuation if execution falters.

Conclusion

While Planet Fitness is executing well, its valuation appears stretched, suggesting the stock may be overvalued. Investors should monitor execution against 2025 guidance closely.

Planet Fitness, Inc. is a franchisor and operator of fitness centers in the United States. The Company operates through three segments: Franchise, Corporate-owned stores, and Equipment. The Franchise segment includes operations related to its franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States, and Canada. The Equipment segment primarily includes the sale of equipment to franchisee-owned stores in the United States, Canada, and Mexico. 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. The Company has approximately 2,575 stores in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, and Australia.

Price Prediction for PLNT Stock in 2030

Based on strong revenue growth of 19.4% in Q4 2024 and new member additions, PLNT is expected to reach $140 per share by 2030. Analysts remain bullish, with an average price target of $110.54, supported by the company's new economic model and expanding fitness market.

PLNT has a total of 3411 employees.