BofA's blunt call on Planet Fitness stock price after earnings

1 week ago 7

Tyler Bundy

Sat, May 9, 2026 astatine 6:00 PM CDT 4 min read

Planet Fitness investors received a tougher presumption from Bank of America aft the gym operator’s latest net update reset expectations for rank growth, pricing, and the company’s near-term banal setup.

Bank of America downgraded Planet Fitness to neutral from bargain and lowered its terms nonsubjective to $59 from $110, according to the Bank of America enactment fixed to TheStreet. The caller people inactive represented 34.1% upside from the $44.01 stock terms listed successful the note, though the size of the chopped showed a overmuch much cautious outlook aft earnings.

The steadfast said Planet Fitness lowered its 2026 outlook aft weaker-than-expected first-quarter sign-ups, changes to its selling strategy, and the determination to skip a planned Black Card terms increase. Bank of America besides lowered its net estimates, with its 2026 EPS forecast moving to $3.22 from $3.39 and its 2027 EPS forecast moving to $3.70 from $4.10.

“With caller selling initiatives apt needing clip to summation traction, we spot constricted catalysts up and downgrade shares to Neutral from Buy,” Bank of America said successful the note.

Planet Fitness rank trends rise concerns

Planet Fitness has built 1 of the largest fittingness nine businesses successful the U.S., with much than 2,890 clubs and 20.8 cardinal members, according to the Bank of America note. The company’s exemplary centers connected a high-value, low-price gym offering aimed astatine consumers who whitethorn not already beryllium to a fittingness club.

That setup makes the archetypal 4th particularly important for the company’s yearly maturation targets. Bank of America said the archetypal 4th typically drives the bulk of yearly nett rank additions, which made the latest rank shortfall a cardinal portion of the downgrade.

More Fitness

Planet Fitness added 700,000 nett caller members during the quarter, according to the note, coming successful beneath interior expectations. Management cited selling missteps that skewed toward much fitness-focused customers alternatively of beginners, portion March and April were besides tracking beneath plan.

The institution has engaged a caller originative bureau and plans to person a caller run successful the marketplace earlier year-end, Bank of America's enactment indicated. That run could assistance acceptable up Planet Fitness for its highest first-quarter rank play successful 2027, though Bank of America said the caller initiatives whitethorn instrumentality clip to summation traction.

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