Planet Fitness (PLNT) Stock Forecast & Price Target

Planet Fitness Inc. is projected to benefit from robust growth, with anticipated system-wide comparable store sales (comps) increasing by approximately 6.5%, revenue growth of about 11%, and a 12% rise in EBITDA for the upcoming fiscal year. The company is also optimizing its Area Development Agreements, leading to a significant 28% increase in its development pipeline, as well as increased Gen Z penetration, which now constitutes 29% of its member base. Additionally, early performance metrics from newly designed clubs indicate higher join rates and lower attrition, underscoring the effectiveness of its strategic initiatives and positioning for continued expansion both domestically and internationally.

Planet Fitness's financial outlook appears negative due to a decline in the percentage of members citing financial reasons for membership cancellation, which fell from 21% to 14%, potentially indicating a less resilient customer base amid economic pressures. Additionally, the modest decrease in membership re-joins, from 38% in Q3 and Q4 to the mid-30s in subsequent quarters, raises concerns about sustained membership retention and overall growth. Finally, the company's reliance on a limited number of suppliers for equipment and services poses risks of business disruptions, which could adversely impact revenues and profitability.