Peloton Targets Corporates with New Wellness Program

Peloton (PTON) has unveiled a new corporate wellness program as it seeks to reach new users and grow its subscription base. Peloton Corporate Wellness is the company’s new program that will offer an array of fitness products.

The wellness program will be open to corporates in the U.S., the U.K., Canada, and Germany at the start. Australia will be added to the mix before the end of the year. The program is designed to make it easy for corporates to provide employees with access to unique mental, physical, and health resources.

Corporates who sign up for the program will offer employees access to Peloton’s digital fitness memberships and high-end fitness products. Subscribers will also receive access to tailored enterprise features to drive strong engagement. (See Peloton stock chart on TipRanks)

“Over the years we’ve worked hard to help our Members achieve healthier and happier lifestyles. Peloton Corporate Wellness is the natural extension for us to be able to scale that offering. Together with our Corporate Wellness partners, we’re now able to share the experience with millions more while also driving stronger culture and community within the workplace,” said William Lynch, President of Peloton.

The unveiling of the corporate wellness program comes on the heels of total workouts on the Peloton platform growing to 171 million in the first three months of 2021, an increase of 48 million from the year-ago period. Members now average about 26 workouts a month.

BofA securities analyst Justin Post recently reiterated a Hold rating but raised his stock price target to $118 from $110, implying that shares are almost fully priced at current levels.

Post stated, “The company seems optimistic on opportunity to re-engage in marketing spend, but will likely see pressure on S&M margins. We think long-term investors are much more focused on sub trends (growth and churn) over HW margins as long-term driver of Peloton’s profitability.”

Consensus among analysts is a Moderate Buy based on 18 Buys, 4 Holds, and 1 Sell. The average Peloton analyst price target of $132.19 implies 12.82% upside potential to current levels.

PTON scores a 5 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.

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