Planet Fitness (PLNT) received a positive update after Stifel upgraded the stock from hold to buy. The firm also raised its price target to $120 from $82. Stifel highlighted steady membership growth and strong long-term sales potential as reasons for the upgrade.
In premarket trading, the stock increased by 1.4%, approaching its all-time high of $109.91. Over the past year, Planet Fitness shares have gained 59%, though the rise has been more modest in 2024, up just 5.3%. If the current gains continue, it would be the stock’s sixth consecutive day of increases.
Short interest in Planet Fitness has surged nearly 28% in the last two weeks. It now accounts for 8% of the stock’s available shares. At current trading volumes, it would take more than four days for short sellers to close their positions. This situation could create conditions for a short squeeze.
Despite this, options traders remain cautious. The high put/call ratio shows that many investors are betting against the stock. However, if market sentiment shifts, these bearish bets could be unwound, potentially pushing the stock higher.
