An Opportunity Exists for Peloton – Oppenheimer

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An Oppenheimer analyst told investors in a note on Friday that “after an exhaustive study,” they are assuming coverage of Peloton (NASDAQ:PTON) with an Outperform rating and increasing the firm’s price target to $20 from $18 per share.

The analyst described Peloton’s past several quarters as “tumultuous,” with the story morphing “rapidly from promising tech unicorn to COVID-19 winner, to post-pandemic victim.”

However, “through the lens of analysts with long-standing backgrounds in consumer and fitness,” they restudied Peloton and its “unique business model.”

“Significant challenges for Peloton remain. That said, we believe that within the dynamic and fragmented health and wellness segment, there exists opportunity for a better-managed and more-disciplined PTON,” said the analyst, who cautioned that their positive call “is longer term and highly speculative in nature.”

Peloton stock tumbled 10% Friday.

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