Planet Fitness downgraded to Hold from Buy at Jefferies

Jefferies downgraded Planet Fitness to Hold from Buy with a price target of $56, down from $90. The firm says that while Planet Fitness remains a best-in-class fitness franchisor, it is stepping to the sidelines following the company’s announcement of the departure of Chris Rondeau. With inflationary pressures and higher interest rates driving more subdued franchisee demand, the announcement raises another point that is likely to weigh on shares over the next several quarters, the analyst tells investors in a research note. Jefferies believes the recent leadership change, higher interest rates, and ongoing inflationary pressures are likely to continue to impact the company’s near-term growth potential.