Analysts on Wall Street Lower Ratings for These 5 Stocks

04. Planet Fitness, Inc. (NYSE:PLNT)

Price Reaction after the Downgrade: -1.79 (-3.56%)

Jefferies analysts, led by Randal Konik, have made several adjustments to their assessment of Planet Fitness, Inc. (NYSE:PLNT) stock. They downgraded the rating from “Buy” to “Hold,” significantly reduced the price target from $90 to $56, and revised their estimates downward in a report issued on September 18. Their rationale for these changes includes various factors, such as a leadership change, which they believe will likely impact the company’s growth potential. As a result of these adjustments, there has been a notable price reaction in the market. The stock is currently trading at $48.50, reflecting a decrease of 3.6%. This price movement indicates that investors are responding to the revised outlook and concerns outlined by Jefferies analysts regarding Planet Fitness, Inc. (NYSE:PLNT) future performance.

Alger Weatherbie Specialized Growth Fund made the following comment about Planet Fitness, Inc. (NYSE:PLNT) in its Q2 2023 investor letter:

“Planet Fitness, Inc. (NYSE:PLNT) is one of the largest and fastest-growing franchisors and operators of fitness clubs in the United States. with over 2,000 clubs (95% franchised) and approximately 18 million members. The company offers high-quality, approachable fitness experiences at a compelling value, targeting the approximately 80% of the U.S. population who currently do not belong to a fitness club. Additionally, Planet Fitness supplies its franchisees with fitness equipment. During the period, the company reported weaker-than-expected fiscal first quarter results, as revenues and earnings fell below consensus estimates. The company noted that despite strong membership growth, equipment revenue fell due to lower new placements. Further, the company cited higher-than-expected operating expenses weighing on quarterly earnings. Despite the near-term weakness, management reaffirmed full-year revenue guidance and noted that the company is still on track to meet its 3-year target of opening approximately 600 additional stores. We believe the company’s differentiated business model is well positioned to continue gaining market share, given its momentum in new memberships and focus on targeting underserved consumers with an attractive value proposition within the fitness industry.”