UPDATE: Loop Capital Starts Peloton Interactive (PTON) at Buy

Loop Capital analyst Daniel Adam initiates coverage on Peloton Interactive (NASDAQ: PTON) with a Buy rating and a price target of $140.00.

The analyst comments "PTON shares are down ~40% from the January highs, in large part due to the company’s voluntary recalls of the Tread and Tread+ and negative press around the safety of those products. Although we fully expect some impact from the recalls, we believe the impact will be short-lived and that management’s guidance likely bakes in an excessive amount of conservatism. Since going public nearly two years ago, PTON has delivered upside vs. the midpoint of guidance each and every quarter, with an average quarterly revenue beat of +11% and EBITDA ~3x better than guidance. In other words, PTON has consistently “under-promised and over-delivered”. To this end, we believe the impact from PTON’s voluntary Tread recalls will be more muted than what the company has currently baked into guidance."

For an analyst ratings summary and ratings history on Peloton Interactive click here. For more ratings news on Peloton Interactive click here.

Shares of Peloton Interactive closed at $103.01 yesterday.

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