Planet Fitness clobbered with downgrades after CEO ouster: 4 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since Friday: downgrades for Planet Fitness, DoorDash, NetApp, and VF Corporation.
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Planet Fitness (NYSE:PLNT) was downgraded at both TD Cowen and Jefferies after a surprise ouster of veteran CEO Chris Rondeau.
The move shocked investors and analysts and did not «appear planned,» according to a William Blair note.
According to an exclusive InvestingPro report, an unnamed event-driven analyst believes activist activity may be behind the move — and the reported noted that SRS Investment, a large Planet Fitness holder, «has some activist credentials.»
On Monday morning following the move, TD Cowen cut the company to Market Perform from Outperform and lowered its price target to $55.00 from $72.00. The analysts commented:
«PLNT is the fitness industry's leader, but we now expect shares to remain range-bound until a new CEO is named and updated growth strategy is adopted. The departure increases uncertainty around franchise health, opening outlook, and competitive position.»
Meanwhile, Jefferies downgraded the company to Hold from Buy and dramatically cut its price target, to $56.00 from the prior $90.00, saying the «recent leadership change, higher interest rates, and ongoing inflationary pressures are likely to continue to impact the company's near-term growth potential.»
Piper Sandler analysts, however, maintained their Overweight rating on the stock, saying they «feel more comfortable after speaking with management… Specifically we appreciate management's and the Board's focus on scaling the business internationally and deploying more effective
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