Peloton Interactive (PTON) App is Dropping in the Ranks as Planet Fitness (PLNT) Rises - UBS

UBS analyst Eric Sheridan reiterated a Sell rating and $74.00 price target on Peloton Interactive (NASDAQ: PTON) after the UBS Evidence Lab data appears to show that May adoption levels of the Peloton Digital app in the U.S. is down ~3-4 percentage points YOY in Apr and -1 more in May. Share of downloads started the YOY decline in March, after being benched against tougher comps when app engagement jumped from 2.5% share of downloads in Feb'20 to close to 8.5% in March'20. As of Jan'21 that share of downloads stood at 6.4% and has been declining sequentially to now closer to 2.9% share. Also of note, Planet Fitness (NYSE: PLNT) app has quadrupled its share of downloads since last year, at 23% share currently among workout apps vs. 6% in May'20, at the height of the pandemic and 4-5% share pre-Covid in May'19. Planet Fitness is the top workout app in the U.S..

The analyst stated "PT $74; Sell Rated. Our PT is based on equal blend of 3.0x EV/FY'23E Sales multiple & 32x EV/FY'26E FCFSBC, PV back 3 years (at discount rate of 15%)." "We believe these data points can be a useful proxy for overall adoption trends of Peloton both in the U.S. and internationally, as well as the competitive landscape for other fitness and wellness offerings. Peloton views its digital app as a primary lead generation channel that has also been growing the fastest among other channels."

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 $100.90 yesterday.

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