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 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 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 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
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.
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