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3 Reasons A Peloton Interactive (PTON) Acquisition Would Make Sense for Nike - Wedbush

February 7, 2022 6:09 AM EST
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Price: $10.06 +0.30%

Rating Summary:
    19 Buy, 15 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 5 | New: 0
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Wedbush analyst James Hardiman reiterated an Outperform rating and $185.00 price target on Peloton Interactive (NASDAQ: PTON) after The Financial Times reported that Nike (NYSE: NKE)
is in the early stages of considering an acquisition of the home-fitness equipment maker PTON. The article stated that NKE has not yet spoken to PTON, so if the reports are true, the process is in the very early stages. The analyst sees 3 reasons the deal would make sense:

1) Leverages Nike's "Consumer Direct" strategy. NKE has been increasingly focused on interacting more directly with consumers. Marketing via interactive workouts to PTON's nearly 3.5 million subscribers could be attractive.

2) Blocking competitors from working with PTON. Adidas and Lululemon have collaborated with PTON in the past.

3) Patent leverage. NKE recently filed a lawsuit against Lululemon alleging patent infringement stemming from LULU's Mirror fitness equipment. Therefore, NKE has patents for fitness equipment that aren't currently being used, but PTON could help them leverage their existing patents.

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 $24.60 yesterday.



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