Stifel has cut its price target for Planet Fitness (NYSE: PLNT) to $105 from $130 but kept a Buy rating on the shares. The stock was trading around $82.35 at the time of the note, close to its 52-week low of $87.44, and is down roughly 16% year-to-date.
The adjustment in valuation follows Planet Fitnesss guidance for 2026 adjusted EBITDA of 10%, a figure Stifel says falls well short of the mid-teens projection the company had previously discussed for the 2026-2028 period. That guidance gap prompted the firm to reassess expectations for the chain.
In its commentary, Stifel described the fourth-quarter 2025 financial results as stable, but the firm expressed disappointment that management did not use prior public forums to better align market expectations. Specifically, Stifel noted missed opportunities to recalibrate outlooks at the companys November Investor Day and the January ICR conference.
As a result of the guidance miss and the perceived absence of near-term growth catalysts, Stifel removed Planet Fitness from its Focus List. The firm said the company now faces a credibility question: whether the 2026 guide is deliberately conservative or whether earlier out-year targets were overly optimistic.
Despite the downgrade to its price target and the Focus List removal, Stifel maintained its Buy rating on the view that the 2026 guidance could be conservative. The firm also warned investors to expect the stock to range-bound until management provides clearer evidence of acceleration in future periods.
Separately, InvestingPro data cited by the note indicates the stock appears undervalued at current levels, with an InvestingPro Fair Value suggesting upside potential. For those seeking additional detail, the firm referenced Planet Fitnesss comprehensive Pro Research Report among more than 1,400 available reports for deeper analysis.
Planet Fitnesss reported fourth-quarter 2025 results beat consensus expectations. The company posted earnings per share of $0.83 versus an expected $0.78, and revenue of $376.3 million compared with the $366.7 million analysts had forecast. Nonetheless, the stock moved lower in pre-market trading despite the beat on both earnings and revenue.
This combination of a guidance shortfall for 2026 and otherwise solid recent quarter results creates a moment of uncertainty for investors as they wait for clearer signs of reacceleration or revised longer-term targets from management.