Raymond James analyst Aaron Kessler bought the shares of Peloton Interactive Inc. PTON downgraded.
after Friday’s better performance than an earnings report in which the company shows a continuation of the strong demand for its exercise bike, but also delays in delivery. Shares are down 7.5% in Friday morning trading. Kessler is concerned that the demand for Peloton equipment ‘may soften’ somewhat once social constraints are curtailed by further progress in the distribution of vaccines. While still having a positive long-term view on the fundamentals of the company, he argued that the stock appears to be reasonably valued, at around 26 times its expectation for gross profit in calendar 2021 and 21 times its expectation for the gross profits for the calendar 2022 from the publication of its note before trading began on Friday. Peloton shares have risen 23% over the past three months over the S&P 500 SPX,
increased by 11%.
