Peloton Interactive (PTON) Stock: $40 Price Target And Outperform Rating

By Amit Chowdhry ● Mar 17, 2022
  • The shares of Peloton Interactive (NASDAQ: PTON) have received a $40 price target from Bernstein. These are the details.

The shares of Peloton Interactive (NASDAQ: PTON) have received a $40 price target from Bernstein. And Bernstein analyst Aneesha Sherman initiated coverage of the Peloton shares with an “Outperform” rating.

Sherman noted that 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 total addressable market (TAM),” wrote Sherman in a research note. “Today, the market is pricing in the worst outcomes, and our worst-case scenario modeling 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.”

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