Planet Fitness App Downloads Signal Slower Member Growth, UBS Says

MT Newswires Live07-24

Planet Fitness (PLNT) app download data suggests some sequential deceleration in member growth in Q2, though active user trends have shown more stability, UBS said in a note Thursday.

The company is scheduled to report its Q2 results on Aug. 6.

The firm expects same-store sales growth of around 0.7% for the quarter, with focus on whether the company's approximately 1% full-year guidance is at risk.

Some franchisees believe the company could introduce a lower-priced third membership tier or move up the timing of a Black Card price increase, with UBS suggesting both could arrive together.

The firm does not expect major changes to full-year guidance without a pricing update and expects the same-store growth guidance to be reiterated when results are reported.

UBS maintained its buy rating and $79 price target on the stock.

Price: 53.48, Change: -0.57, Percent Change: -1.05

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