https://www.tipranks.com/news/the-fly/planet-fitness-price-target-raised-to-75-from-70-at-stifel
Stifel analyst Chris Okal raised his price target on Planet Fitness from $70 to $75 and maintains a “hold” rating on the stock. The move to a higher Classic membership price of $15 per month had a positive impact on the percentage of new members choosing the Black Card, analysts told investors in a research note. According to the company’s research, since its rollout in late June, the system has likely increased penetration of new black card members by at least 500 basis points, and while this is beneficial, total new member numbers have increased by at least 500 basis points since the rollout in late June. The company believes that this could be a negative impact. If that continues, Stifel says profits will increase even more. The company will become more constructive as gross joins start to improve and franchisees are able to build smaller gyms in more locations.
Originally published on TheFly, the ultimate source for market-moving, real-time financial news. Try it now >>
See today’s best performing stocks on TipRanks >>
Read more about PLNT:
