Planet Fitness (New York Stock Exchange: PLNT) After the stock price plummeted following the resignation of Chris Rondeau as CEO, some analysts actively defended the stock price. Planet Fitness (PLNT) stock closed down 15.9% on Friday. Following this announcement, the stock hit a 52-week low of $49.91. Trading volume increased to over 12 million shares. The selling pressure continued on Monday morning with further selling pressure. 1.81% Move your lover. Notably, the short position in the gym club operator is 6% of the stock’s total float.
Looking at the executive shake-up at Planet Fitness (PLNT), Macquarie analyst Paul Golding said that interim CEO Craig Benson’s experience and integrity as a manager of franchise businesses and large organizations is key. The company said it gave it reassurance that the company is in good hands while it seeks to transform itself. A permanent successor evolves. Golding and his team believe the current interest rate environment is putting a damper on stock prices as franchisees scale back new unit introductions beyond their ADA contractual obligations. The move comes after management warned last year of supply chain delays in opening new units as a result of commercial air conditioning constraints due to production disruptions in China.
“This change in management direction may reflect the board’s view of how the messaging of the economic slowdown has been managed, or the sense that the size and direction of the franchise is a bit off track for the company in terms of its business model. I think it may be arising from this.”
Macquarie said he is now becoming increasingly cautious on PLNT, but is sticking with an outperform rating.
Morgan Stanley analyst Brian Haber said conversations with the company’s management suggest the board’s decisions are strategic and unrelated to short-term fundamentals. said. Haber and his team cautioned against reading too much into Planet Fitness’ (PLNT) decision not to repeat its guidance. “While we are not surprised by the negative reaction in the stock price, the issues facing PLNT are well understood by investors, with lower growth expectations for the unit even if most other parts of the guidance are maintained. We’re surprised at the scale, considering the fact that it could be reset.” Port.
Morgan Stanley rates Planet Fitness (PLNT) with an “overweight” rating, believing that a strong brand in an attractive industry with a strong overall franchisee base will offset near-term unit growth issues. “Weight” was left unchanged. Importantly, the company also believes demand trends are holding.
Meanwhile, Jefferies was further spooked by the management change in Planet Fitness (PLNT), downgrading the stock from “buy” to “hold.”
Analyst Randall Connick says Planet Fitness (PLNT) remains a best-in-class fitness franchisor, but the company faces a further economic downturn due to the sudden departure of its CEO, concerns about inflationary pressures, and rising interest rates. The company stated that it had been removed from the rating due to concerns that it might be. Suppression of franchisee demand. The company has set a price target of $56.
Mr. Stifel also worked with Planet Fitness (PLNT). The company said it maintained its Buy rating on the company because it believes it has the potential to return to a growth trajectory with the right strategic priorities and a greater sense of urgency. Interestingly, Stifel said he would not be surprised if PLNT attracted positive shareholder activity.