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UPDATE: Bernstein Starts Peloton Interactive (PTON) at Outperform

March 14, 2022 5:07 PM EDT
Get Alerts PTON Hot Sheet
Price: $12.52 -3.25%

Rating Summary:
    20 Buy, 14 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 23 | New: 34
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(Updated - March 15, 2022 4:29 AM EDT)

Bernstein initiates coverage on Peloton Interactive (NASDAQ: PTON) with a Outperform rating and a price target of $40.00.

The analyst comments "After a catastrophic fall from grace, Peloton has a new CEO, a new supply chain strategy, and a tighter belt on operating expenses. Meanwhile, the underlying business is still healthy, with a highly engaged user base, a sticky subscription-based revenue stream, and a large and fast-growing TAM. Today, the market is pricing in the worst outcomes, and our worst-case scenario modelling still yields a positive adj. EBITDA next year. Looking across a range of fitness hardware and subscription comps, we think a valuation range of 3-4x is fair and we take the low end of the range, valuing Peloton at 3x EV/Sales versus 2x current price."

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 $21.14 yesterday.


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