Peloton Stock Gets Downgrade In Spite Of Strong Performance: Here's Why


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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)


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsCOVID-19 PandemicEvercoreExercise Equipmenthome fitnessShweta Khajuria