Planet Fitness (PLNT) PT Lowered to $66 at Piper Sandler Following CEO Exit, Says 'We View as Positive Strategically Despite Risks'
Piper Sandler analyst Peter Keith lowered the price target on Planet Fitness (NYSE: PLNT) to $66.00 (from $78.00) while maintaining a Overweight rating.
The analyst comments "We were surprised by the rapid change in management that PLNT announced today, with an immediate departure of current CEO, Chris Rondeau, and the appointment of current Board member, Craig R. Benson, as interim CEO. While uncertainty around strategic direction of the business and current financial performance sparked significant pressure on shares today, we feel more comfortable after speaking with management and are leaving our OW thesis unchanged. 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, and think Mr. Benson is a solid fit to implement that until a permanent replacement is found. Our PT moves to $66 from $78."