Planet Fitness (PLNT) tumbled more than 5% on Tuesday on a slew of Wall Street downgrades. JPMorgan and Jefferies both cut their rating for the gym franchise following long-time CEO Chris Rondeau's abrupt departure from the company.
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Jefferies downgraded Planet Fitness shares to hold from buy, cutting its price target to $56 apiece from $90 apiece, citing the "recent leadership change, higher interest rates, and ongoing inflationary pressures are likely to continue to impact the company's near-term growth potential."
CNBC's Jim Cramer agrees with analysts, adding that the market's reaction is telling of how vital the veteran executive was to the workout chain. "He was the company for heaven's sake," Cramer said, citing Rondeau's long tenure, where he worked his way up from a front desk position nearly 30 years ago at the gym's first location.
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