Stifel analyst Chris O’Cull raised the firm’s price target on Planet Fitness to $75 from $70 and keeps a Hold rating on the shares. The move to the higher $15/month Classic membership pricing has positively impacted the mix of new members opting for the Black Card, the analyst tells investors in a research note. The firm’s checks indicate the system has likely experienced at least 500 basis points of improvement in new member Black Card penetration since the late June rollout, and while this is beneficial, the firm also believes gross new joins are down year over year, which could hurt the incremental benefit if it continues, Stifel says. The firm would become more constructive if gross joins started improving and franchisees were allowed to build smaller gyms in more location types.

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

See today’s best-performing stocks on TipRanks >>

Read More on PLNT: