TD Cowen reiterated its Buy rating and $100 price target on Planet Fitness (NYSE: PLNT), while adjusting its conviction level on the stock.
The firm said it continues to view Planet Fitness as an attractive investment, noting that valuation appears to have bottomed at around 12x EBITDA and that the overall risk-reward profile remains favorable. However, the analyst lowered the stock’s standing within its conviction list, citing reduced confidence in the near-term catalyst path that had been anticipated in December.
TD Cowen indicated that fiscal 2026 estimates appear secure, but emphasized that the stock is currently driven more by sentiment and valuation dynamics. The firm added that management will need to rebuild credibility following the departure of the company’s CFO and expectations that it may withdraw its three-year algorithm during the upcoming first-quarter earnings call.
While Planet Fitness was described as a high-quality asset with a compelling long-term growth algorithm, the analyst noted that execution needs to improve. The company was also urged to enhance its value proposition amid rising competition from higher-quality peers such as Life Time Group, and to better monetize its existing membership base.
Despite competitive pressures, TD Cowen said it remains less concerned about market share risks given the large and expanding total addressable market. However, the firm stated that it would require stronger fundamental performance before increasing its conviction in the stock.
