Deutsche Bank Rates Planet Fitness as Hold with 13.35% Upside

In a new report, Deutsche Bank has initiated coverage of Planet Fitness with a Hold recommendation while providing a price target indicating a potential upside of 13.35%, despite a decrease in institutional share ownership.

Date: 29-09-2024

AI Rating: 6

The report indicates a Hold recommendation for Planet Fitness (PLNT) from Deutsche Bank, aligning with a cautious investor sentiment. The crucial price forecast suggests a potential increase of 13.35% from its latest closing price of $80.48, with an average target of $91.23 per share. This forecast may attract investor interest, positively impacting stock prices.

Additionally, the report highlights projected annual revenue growth of 18.00%, bringing the expected revenue to $1,223 million. This robust growth in revenue can signify strong operational potential, further encouraging positive investor sentiment.

In terms of earnings, the projected annual non-GAAP EPS is reported at 2.62, which is a crucial metric for assessing profitability and could positively influence perceptions of financial health among investors.

However, the analysis also notes an overall decrease in institutional ownership by 1.19% over the past three months, with specific firms like Amundi significantly reducing their positions by 8.31%. This could be interpreted negatively and reflects a bearish outlook, as indicated by the reported put/call ratio of 1.35.

The cautious approach from Deutsche Bank and varying institution positions suggests mixed signals for investors. While the revenue growth and EPS forecasts are appealing, the decrease in institutional holdings and a bearish sentiment in the options market might temper stock price appreciation.

Stocks: PLNT