Bernie McTernan, a consumer technology analyst at Rosenblatt, believes that the updated pricing model and new products should be supportive for Peloton (NASDAQ: PTON) stock and its business.

Earlier today, Peloton announced plans to slash prices of its most popular bike by 15%. Moreover, a provider of interactive fitness platform, has presented new fitness products.

"When we launched Peloton, we knew we were onto something special. Now, eight years later, we have a passionate global community of 2.6 million Members, and we feel like we're just getting started, in terms of how we can impact the health and well-being of people worldwide through our platform, content and products," said John Foley, Peloton's CEO and Co-founder.

The at-home exercise bike will now cost $1,895, instead of $2,245, with monthly financing rate now sitting at $9, instead of $49. In an aggressive attempt to enlist new members, Peloton is hoping to capitalize on the pandemic measures and the fact that many people were forced to train at home.

"Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches, we'll be able to offer access to Peloton's best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home," Foley added.

McTernan expects that today’s news will be a key focus on the earnings call, scheduled for Thursday.

“We expect the new products and price points to be a tailwind to our already above consensus estimates for FY'21E, with the value tread launching ~6 months sooner than expected. Today's announcement should be a key focus on the earnings call on 9/10 for the impact on FY'21 subscribers and their serviceable addressable market,” he wrote in a note to clients.

According to Rosenblatt’s analyst, these topics are likely to dominate the earnings call:

• How do these new products and price points impact your SAM?
• How do these new products and price points impact FY4Q20 and FY'21E guidance?
• Will this drive a change in marketing spend and customer acquisition costs to get the word out on the new products and price points?

Rosenblatt has a price target of $105 per share on PTON, which is around 30% higher than yesterday’s closing price of $80.63. The stock is rated as “Buy’.

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 $80.63 yesterday.