Morgan Stanley, a renowned financial services firm, recently initiated coverage on shares of Planet Fitness (NYSE:PLNT) in a research note issued on September 27, 2023. According to Briefing.com, Morgan Stanley assigned an “overweight” rating to the stock along with a price target of $62.00. This target price suggests a potential upside of 39.67% from the stock’s previous close.
On Wednesday, NYSE:PLNT opened at $44.39. Over the past year, Planet Fitness has witnessed a wide trading range with its fifty-two week low recorded at $44.13 and its fifty-two week high noted at $85.90. The company currently possesses a market capitalization of approximately $3.91 billion.
Planet Fitness operates as a fitness center franchisor under the brand name Planet Fitness, Inc., alongside its subsidiaries. The company’s operations are divided into three segments: Franchise, Corporate-Owned Stores, and Equipment. In addition to the United States, Planet Fitness franchises its fitness centers in Puerto Rico, Canada, Panama, Mexico, and Australia.
In terms of financial performance, Planet Fitness last released its earnings results on Thursday, August 3rd. The company reported earnings per share (EPS) of $0.65 for the quarter, surpassing analysts’ consensus estimates of $0.54 by $0.11. Furthermore, the company generated revenue worth $286.50 million during the same period, outperforming analysts’ expectations of $251.99 million.
Despite facing some concerns regarding negative return on equity and net margin fluctuations in previous quarters but it posted a remarkable 27.7% increase in revenue on a year-over-year basis for this particular quarter.When compared to the same period last year when EPS stood at $0.38 for this particular period was considered an improvement.
Analysts specializing in research foresee that Planet Fitness is expected to post earnings per share of approximately $2.18 for the current fiscal year.
Morgan Stanley’s recent coverage on Planet Fitness provides investors with valuable insights into the company’s potential growth prospects. With an optimistic rating and a significant price target, it appears that Morgan Stanley believes in Planet Fitness’ ability to deliver positive outcomes for its shareholders. However, as with all investments, it is crucial for individual investors to conduct their own thorough analysis and consider additional factors before making any investment decisions.
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Updated on: 28/09/2023
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Analysts and Institutional Investors Assess Planet Fitness’ Future Prospects
As the stock market continues to fluctuate, analysts have been closely monitoring the performance of Planet Fitness. Recently, several analysts have expressed their opinions on the company’s stock and provided target price updates.
One of these analysts is Robert W. Baird. In a research note on September 18th, Baird lowered their target price for shares of Planet Fitness from $87.00 to $65.00. This reduction in target price indicates a bearish outlook for the company’s future growth potential.
Similarly, Royal Bank of Canada (RBC) also reduced their price target on September 4th from $86.00 to $78.00. Despite this decrease, RBC maintained an “outperform” rating for the company, suggesting that they still have confidence in its performance.
JPMorgan Chase & Co., on the other hand, adjusted their rating from “overweight” to “neutral” and reduced the price target from $70.00 to $52.00 in a research report on September 19th. This change reflects a shift in sentiment towards Planet Fitness and may influence other investors’ decisions.
Furthermore, BNP Paribas downgraded Planet Fitness from a “neutral” rating to an “underperform” rating and set a target price of $57.00 in June earlier this year. Their negative outlook suggests that they anticipate further decline in the company’s stock value.
Lastly, Jefferies Financial Group also revised their rating for Planet Fitness from “buy” to “hold” and lowered their target price from $90.00 to $56.00 in a research report released on September 18th.
These multiple analyses showcase various perspectives regarding Planet Fitness’ future prospects as an investment opportunity.
Moreover, institutional investors and hedge funds have made adjustments to their stakes in the business recently, indicating shifts in market sentiment towards the fitness industry giant.
For example, BlackRock Inc., one of the largest institutional investors, increased its position in Planet Fitness by 52.2% during the second quarter of this year. The company now holds approximately 12,057,346 shares, valued at around $813,147,000.
Champlain Investment Partners LLC also boosted their position in the company by 60.7% during the same quarter. They now own 3,103,159 shares with an estimated value of $209,277,000.
State Street Corp followed suit and increased their holdings by 78.4%, owning around 2,295,657 shares worth about $154,819,000.
Cadian Capital Management LP showed even greater confidence in Planet Fitness’ future growth potential by increasing their position in the company by a staggering 113.5%. This move saw them acquire an additional 812,000 shares representing a total value of $103,015,000.
Lastly, Norges Bank entered the game as a new player during the fourth quarter last year. Their initial acquisition was valued at about $63,014,000.
These additions and reductions made by institutional investors and hedge funds indicate their continued evaluation of Planet Fitness as a lucrative investment option amidst market uncertainties.
As we examine these ratings and adjustments made by analysts and institutional investors alike for Planet Fitness stock it becomes evident that there is a wide range of opinions on the company’s future prospects. Therefore it is important that every investor conducts thorough research and due diligence before making any investment decisions based on these recommendations and evaluations to ensure accurate analysis matches with personal strategies in order to achieve desired financial goals.