Investing.com - Jefferies reiterated a Buy rating on Planet Fitness Inc. (NYSE:PLNT) shares with a $175.00 price target. The stock currently trades at $81.91, just above its 52-week low of $79.18, presenting what analysts see as a compelling entry point.
The firm noted that Planet Fitness has outperformed major consumer retailers including Walmart and Costco over the past two decades based on comparable metrics. Despite this performance, Planet Fitness trades near all-time low valuations while those industry leaders trade near all-time highs. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment, with a PEG ratio of 0.98 suggesting attractive growth-adjusted pricing.
Jefferies described Planet Fitness as the Walmart of the gym space and identified what it views as a significant market dislocation. The firm recommended buying shares at current levels.
The analyst expects sentiment to improve as churn concerns diminish, membership growth accelerates, and pricing benefits materialize. Jefferies characterized Planet Fitness as one of the strongest defensive growth stories in the market.
The firm stated that current valuation levels represent a compelling buying opportunity for the fitness chain operator. For deeper insights into Planet Fitness's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.
In other recent news, Planet Fitness reported its fourth-quarter 2025 earnings, surpassing expectations with an earnings per share of $0.83, compared to the projected $0.78. The company's revenue also exceeded forecasts, reaching $376.3 million against an anticipated $366.7 million, with same-store sales growth of 5.7%, above the Street estimate of 5.4%. Despite these strong results, several analyst firms have adjusted their price targets for the company. BofA Securities lowered its price target to $110 from $115, maintaining a Buy rating, and highlighted the company's solid performance in the quarter. TD Cowen also reduced its price target to $100 from $135, citing weather-related challenges in January as a concern, though they noted stable business trends. Stifel adjusted its price target to $105 from $130, pointing to Planet Fitness's 2026 adjusted EBITDA guidance of 10%, which missed previous mid-teens expectations. These developments reflect a cautious outlook from analysts, despite the company's recent earnings success.