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

February 7, 2022 6:09 AM EST
Get Alerts PTON Hot Sheet
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
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

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.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Definitive Agreement