Peloton Stock Gets Downgrade In Spite Of Strong Performance: Here's Why
Although Peloton Interactive Inc (NYSE: PTON) has benefited significantly from the COVID-19 pandemic stay-at-home environment, its stock could trade sideways in the near term, given the 434% run-up in the past year, according to Evercore.
The Peloton Interactive Analyst: Shweta Khajuria downgraded the rating for Peloton Interactive from Outperform to In Line, while reducing the price target from $160 to $125.
The Peloton Interactive Thesis: The company is a “market leader in connected fitness and a clear beneficiary of the COVID-accelerated secular trend of bringing fitness to the home,” Khajuria said in the downgrade note.
Peloton Interactive “benefits from being the first mover and sits at the cross-section of key consumer trends — wallet share shifts towards wellness & fitness and a greater preference for 'on-demand' services over analog counterparts,” the analyst noted.
“PTON’s vertical integration across its hardware, software and media/content gives the co. a competitive advantage, as it has control over its supply chain, software and unique content/classes,” she added.
Referring to the stock rally, Khajuria recommended buying on a pullback or “in a less volatile macro environment.”
PTON Price Action: Shares of Peloton Interactive had risen by 5.17% to $114.66 at the time of publication Tuesday morning.
(Photo: Peloton)
Latest Ratings for PTON
Apr 2021 | Credit Suisse | Initiates Coverage On | Outperform | |
Apr 2021 | Evercore ISI Group | Downgrades | Outperform | In-Line |
Apr 2021 | Wolfe Research | Initiates Coverage On | Peer Perform |
View More Analyst Ratings for PTON
View the Latest Analyst Ratings
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