Peloton Interactive Stock (PTON): Should I Buy It Now?

By Amit Chowdhry ● June 26, 2020
  • Should you buy Peloton Interactive Inc (NASDAQ: PTON) now? Here is some information to help you decide.

Peloton Interactive Inc (NASDAQ: PTON) is known for operating an at-home fitness platform for live and on-demand indoor cycling classes. And the company is known for pioneering connected and technology-enabled fitness along with streaming immersive instructor-led boutique classes for users.

The company runs three reportable segments, including Connected Fitness Products, Subscription, and “Other.” The Connected Fitness Product includes the sales of bike, tread, and related accessories. The Subscription segment includes monthly subscription and credits from live studio classes. And the “Other” segment consists of boutique and apparel sales.

Recently, Stifel Nicolaus analyst Scott Devitt raised his price target for the company’s stock from $55 to $62 for the company’s shares. And Devitt reiterated his buy rating on the shares. 

Devitt also pointed out that he is “incrementally positive” on the company’s momentum. The work from home orders associated with the COVID-19 pandemic drove the company’s momentum as gyms were shut down and more people have time to spend at home exercising.

Peloton also told investors to expect that it will hit around 1.04 to 1.05 million subscribers when the fiscal year ends on June 30, up from about 886,000 on March 31. And Peloton expects revenue of between $510 million and $512 million for its fiscal fourth quarter, down from the $524.6 million it generated in the quarter ended March 31. However, this is more than double the results from a year ago. 

Peloton Interactive Inc (NASDAQ: PTON) Stock Performance as of 06/26/2020:

1 day: Up about 0.5%

5 day: Up about 14.14%

1 month: Up about 39.86%

3 month: Up about 126.33%

6 month: Up about 115.78%

YTD: Up about 95.86%

1 year: Up about 126.13%

Since IPO: Up about 131.87%

Should You Buy Peloton Interactive Inc (NASDAQ: PTON) Now?

In all of the reports I have been reading, most analysts are rating Peloton Interactive as a buy. Personally, I’m bullish in the long-term value of Peloton Interactive’s stock price as well.

Disclosure: I own a small number of Peloton Interactive Inc (NASDAQ: PTON) shares. I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.