Planet Fitness downgraded to Market Perform at TD Cowen after CEO removed

TD Cowen downgraded Planet Fitness to Market Perform from Outperform with a price target of $55, down from $72, following the board’s decision to remove CEO Chris Rondeau and engage in a leadership search. While calling Planet Fitness “the fitness industry’s leader,” the firm now expects shares to remain range-bound until a new CEO is named and an updated growth strategy is laid out, arguing that the CEO departure increases uncertainty around franchise health, the opening outlook and the company’s competitive position.