Monday, 2 October 2023

Business News

Planet Fitness (NYSE:PLNT) Slides as CEO Departs – TipRanks Financial Blog

Planet Fitness (NYSE:PLNT) Slides as CEO Departs – TipRanks Financial Blog

Planet Fitness (NYSE:PLNT), who represented the face of gyms everywhere during the COVID-19 pandemic, and gave us the now-infamous Lunk Alarm, lost somewhat in Monday morning’s trading session. It also lost its CEO, and its replacement is something of a bizarre choice at best.

Planet Fitness’ board of directors asked former CEO Chris Rondeau to leave. In his place, the board installed fellow board member and former Governor of New Hampshire Craig Benson to step in and take his place. The move was sufficiently alarming to Jefferies analysts—as expressed by analyst Randal Konik—that Jefferies dropped its rating on Planet Fitness from Buy to Hold. Konik noted that the move to ditch Rondeau for Benson would likely hurt the stock going forward, as Rondeau was the one who led the charge on Planet Fitness’ rapid expansion. All those relationships, therefore, went with him and will hinder Planet Fitness going forward.

Benson, of course, asserts that he is “deeply familiar with the business,” and since he’s been a board member for most of Planet Fitness’ meteoric rise, that should be sufficient to cover the gap left by the popular CEO who built the whole thing up in the first place. With powerlifters and hardcore gym enthusiasts generally calling Planet Fitness worthwhile for those who want low-cost and highly casual experiences, that does cement its target market somewhat. And it’s sufficiently broad to capture quite a bit of revenue in the process. Some even assert that things like the “Lunk Alarm” and a general disdain for the hardcore gym enthusiast keep profits up by allowing lower average use times.

What is the Target Price for PLNT?

Overall, analysts are sticking with Planet Fitness. Currently, Planet Fitness stock is rated a Moderate Buy thanks to 10 Buy ratings, three Holds, and one Sell. Further, Planet Fitness stock comes with an average price target of $70.50, giving it 42.77% upside potential.


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