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Peloton's Worth A Ride, Baird Says In Bullish Initiation

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Peloton's Worth A Ride, Baird Says In Bullish Initiation

Baird Equity Research started coverage of Peloton Interactive, Inc. (NASDAQ: PTON) with a bullish rating, citing a large potential market and disruptive platform. 

The Analyst

Baird’s Jonathan Komp initiated coverage of Peloton with an Outperform rating and $28 price target.

The Thesis

Komp cited “very positive” customer satisfaction ratings for the newly public Peloton — with more than 60% of users saying they "love" the product — and said he sees substantial long-term sales and profit upside. (See his track record here.) 

The analyst acknowledged that Peloton’s late September IPO was disappointing; the stock is off more than 15% from its $29 IPO price.

As the company invests, it may prove difficult to achieve profitability in the first few years, Komp said. 

At the same time, Peloton has a large addressable market and could capture a $5-billion-plus revenue opportunity by fiscal 2024, he said. 

"PTON possesses substantial long-term sales/profit upside." 

Price Action

Peloton shares were trading 6.55% higher at $24.73 at the time of publication Wednesday. 

Related Links:

Peloton IPO: What You Need To Know

Peloton Files For IPO

Photo courtesy of Peloton.

Latest Ratings for PTON

DateFirmActionFromTo
Nov 2019MaintainsOutperform
Nov 2019MaintainsMarket Outperform
Oct 2019Initiates Coverage OnOutperform

View More Analyst Ratings for PTON
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Posted-In: Baird Equity Research Jonathan KompAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

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