Planet Fitness price target raised to $75 from $70 at Stifel

Stifel analyst Chris O’Cull raised the firm’s price target on Planet Fitness to $75 from $70 and keeps a Hold rating on the shares. The move to the higher $15/month Classic membership pricing has positively impacted the mix of new members opting for the Black Card, the analyst tells investors in a research note. The firm’s checks indicate the system has likely experienced at least 500 basis points of improvement in new member Black Card penetration since the late June rollout, and while this is beneficial, the firm also believes gross new joins are down year over year, which could hurt the incremental benefit if it continues, Stifel says. The firm would become more constructive if gross joins started improving and franchisees were allowed to build smaller gyms in more location types.

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