Peloton Shares Spike on Record Participants in Live Streaming Cycling Class
Shares of home-fitness cycling company Peloton Interactive (PTON) on Friday jumped over 6% after a record 23,000 exercisers participated in its live streaming class.
The company, which sells exercise bicycles and is known for its streaming workout videos, said that on April 22 the most people ever streamed a single cycling class, according to a Bloomberg report. The class in question was one of the first times a Peloton class was ever filmed outside of its two studios, the report said.
At the beginning of the month, Peloton decided to cease live production at both its New York and London studios until Thursday, April 30th.
Peloton shares have benefited from the coronavirus lockdown restrictions leaving more and more people at home, while gyms are shut down and outside sports activities are limited. On Friday, the stock increased 6% to $31.74 after soaring as much as 22% this year.
Four-star analyst Edward Yruma at KeyBanc on April 7 reiterated his Buy rating on the stock with a $45 price target, citing very strong demand for the company’s bikes.
“Our checks reinforces data from our weekly report pointing to very strong Peloton trends over the past three weeks,” said Yruma. “We recently upwardly adjusted our PTON estimates and believe that bias remains to the upside. Additionally, workout seasoning was very high last week, which should manifest itself in higher workouts per connected fitness subscription.”
Overall Wall Street analysts have a bullish outlook on Peloton stock. The Strong Buy consensus rating is based on 18 Buys, 1 Hold and 1 Sell. The $37.75 average price target indicates 19% upside potential in the shares in the coming 12 months. (Peloton stock analysis on TipRanks).Related News:
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