Planet Fitness cut to Neutral at DA Davidson after 50% stock rally

As previously reported, DA Davidson analyst Linda Bolton Weiser downgraded Planet Fitness to Neutral from Buy with a price target of $87, down from $99. While the stock has risen about 50% over the past five months, the company has had no improvement in two key fundamental negatives – extended lead times for HVAC systems and slower franchise opening pace vs. pre-COVID due to cost inflation, the analyst tells investors in a research note. The firm is also now modeling its assumed earnings multiple at 35-times vs. 40-times prior.