Jefferies analysts downgraded Planet Fitness (NYSE:PLNT) from Buy to Hold and lowered the price target from $90 to $56 per share. The downgrade comes in the wake of a surprising leadership change at Planet Fitness, where CEO Chris Rondeau was ousted from his position. Following this announcement, the company’s shares dropped by more than 15% on Friday.
The analysts expressed concerns about the impact of this leadership change, higher interest rates, and ongoing inflationary pressures on the company’s near-term growth potential. While interim CEO Craig Benson has a history with Planet Fitness, serving on its board since 2017 and owning a franchise since 2012, the analysts believe that this leadership transition introduces uncertainty regarding the company’s future growth prospects.