Peloton Gets Lone Sell Rating as Post-Covid World Awaits



© Reuters

By Christiana Sciaudone

Investing.com — Peloton (NASDAQ:)’s high ride was cut short as the stock got downgraded with a post-Covid world in sight.

UBS bumped the bike maker to sell from neutral — the company’s only sell rating, according to data compiled by Investing.com — with a price target of $124 from $115, StreetInsider reported. Shares tumbled about 7%. The stock rose by more than 500% from its trading debut in 2019 to a record last month.

Peloton gained steam after the spread of the coronavirus forced gyms to close and people to seek out alternatives to keep fit while stuck at home. Sales were so successful, in fact, that the company has struggled to supply the demand, prompting some customers to look elsewhere, and Peloton to buy a U.S. manufacturer of gym equipment to try to keep up.

“While we still think Peloton has a long term opportunity to disrupt traditional fitness business models, we downgrade it to Sell to risk/reward skewed to the downside from current levels,” UBS’s Eric Sheridan wrote in a note, according to StreetInsider. “Additionally, we update our model to reflect the Precor acquisition (expected in close in early calendar year 2021) and lower our out-year revenue estimates (FY’23-’25) to reflect more normalized growth rates after COVID-19.” 

Most analysts are loving Peloton, which has 20 buy ratings, two holds and Sheridan’s lone sell. 

Sales have grown from $228 million in the quarter ended Sept. 2019 to almost $758 million a year later, with a loss per share of $1.29 flipping to a gain of 20 cents a share.

READ  Australia regulator chief Sims says Google and Facebook draft laws fair, critical for media future

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here