Breaking News
Investing Pro 0
💎 Access the Market Tools Trusted by Thousands of Investors Get Started

Planet Fitness clobbered with downgrades after CEO ouster: 4 big analyst cuts

Published Sep 18, 2023 06:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
NTAP
+0.16%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
VFC
-1.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PLNT
-0.96%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DASH
+0.75%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

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.

InvestingPro subscribers got this news first. Never miss another market-moving headline.

Planet Fitness slashed at two firms after CEO pushed out

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 report 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 marketing strategies to support the growth trajectory."

Piper analysts also believe the temporary CEO appointment, longtime board member and former New Hampshire Governor Craig Benson, is a "solid fit" until a permanent replacement is found.

Still, Piper - along with Baird and Raymond James - all lowered their Planet Fitness price targets to the mid-$60s.

Shares plunged more than 15% on Friday, and were losing another 1.5% to $49.55 in Monday's premarket after the slew of downgrades and price target changes.

InvestingPro | Know Market Moves

DoorDash cut to Market Perform on student loan risks

DoorDash (NYSE:DASH) shares fell more than 2% on Friday after MoffettNathanson downgraded the company to Market Perform from Outperform with a price target of $93.00, citing concerns about student loan risks, as reported in real time on InvestingPro

The firm expressed worries that as 43 million Americans face the end of the student loan suspension, their discretionary spending, including food delivery, might be affected. DoorDash and Uber Eats have a higher proportion of users in the 25- to 44-year-old age group, which carries a significant share of US student loans. The firm believes this could pose near-term booking risks to DoorDash.

Two more downgrades

NetApp (NASDAQ:NTAP) shares fell nearly 2% pre-market today after William Blair downgraded the company to Market Perform from Outperform.

{{0|Piper Sandler} } downgraded VF Corporation (NYSE:VFC) to Neutral from Overweight and cut its price target to $20.00 from $28.00. As a result, shares fell around 2% pre-market today.

Jump on the biggest news for your portfolio amid a barrage of market headlines: Always be the first to know with InvestingPro.

InvestingPro | Be The First To Know

Planet Fitness clobbered with downgrades after CEO ouster: 4 big analyst cuts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
degefu dawana
degefu dawana Sep 18, 2023 1:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i nedd 100000$
Ayub Ahmad
Ayub Ahmad Sep 18, 2023 12:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
100milon maney
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email