12:44 PM EDT, 10/29/2024 (MT Newswires) -- Planet Fitness ( PLNT ) counters bearish investor sentiment with strong pricing power and an improved same-store sales outlook, Morgan Stanley said Tuesday in a report.

"Concerns centered on the development outlook & weak membership trends," Morgan Stanley said. Still, "we'd be buyers on any weakness" after Q3 results, the report said.

Morgan Stanely lowered Q3 estimates on revenue and earnings before interest, taxes, depreciation and amortization on fewer-than-expected unit openings and potential membership declines.

The EBITDA forecast at $119 million is still "modestly above" Wall Street's $116 million estimate, the report said. Results are due Nov. 7.

"We now expect full-year unit openings at the low end of prior outlook, but this is more than offset by our improved" same-store sales forecast," Morgan Stanley said.

Morgan Stanley raised its price target on Planet Fitness ( PLNT ) to $89 from $84 and maintained its overweight rating.

Shares of Planet Fitness ( PLNT ) fell 1.6% in recent Tuesday trading.

Price: 79.96, Change: -1.29, Percent Change: -1.58