TD Cowen reiterated its Buy rating on Planet Fitness (NYSE: PLNT) and maintained a $135 price target in a research note published Thursday. The firm acknowledged the company's start to the year fell short of prior expectations, but said its sector-focused view remains firmly supportive, describing Planet Fitness as its "#1 idea" in the fitness category.
According to TD Cowen, market checks and web scraping analytics point to business trends that are stronger than investors have feared, and the firm argued shares are being "unfairly punished" in the current market environment. The research note highlighted that, although January performance was softer, Planet Fitness has historically shown momentum in February and March in prior years, indicating the quarter "could end up solid."
The firm reduced its comparable sales estimates relative to its prior bullish scenario, but nonetheless characterized the near-term risk-reward profile as "very favorable." TD Cowen did caution, however, that earnings per share "could be volatile," leaving room for short-term fluctuations despite the positive stance.
Other recent analyst and company developments
Planet Fitness has seen several notable updates that drew analyst attention. The company appointed Steve Beard to its Board of Directors, expanding the board to nine members. Beard, who serves as Chairman and CEO of Covista Inc., was noted for bringing experience in healthcare education to the fitness operator's board.
On the analyst front, Canaccord Genuity raised its price target to $140, citing strong membership trends based on a survey of 50 locations. TD Cowen reiterated its Buy with a $135 target while pointing to the company’s progress in opening new locations. Jefferies maintained a Buy rating and increased its price target to $185 following discussions with Planet Fitness executives about growth plans for 2026. UBS also stuck with a Buy rating and set a $125 price target, noting that the company beat expectations on net unit openings for the quarter.
Together, these broker notes and the board appointment reflect broadly positive sentiment among analysts on Planet Fitness’s growth prospects and operational execution, even as some near-term metrics have been softer than anticipated.
Summary of TD Cowen's position
- Buy rating maintained with a $135 price target.
- Market checks and web scraping suggest trends are "better than feared" despite a weak January.
- Comparable sales estimates trimmed from the previous bullish case, but the near-term risk-reward remains "very favorable."
- EPS may be volatile in the near term.
Context and implications
Analyst actions from Canaccord Genuity, Jefferies, UBS, and TD Cowen indicate a general consensus toward a constructive outlook on Planet Fitness, driven by membership signals, unit-opening performance, and management discussions about longer-term growth plans. The combination of a reinforced Buy view from multiple firms and the board expansion suggests continued investor focus on the company's growth execution and operational momentum.