Peloton Interactive (PTON) Stock Rebounds a But: Telsey Reduces The PT

Peloton Interactive Inc (NASDAQ:PTON) stock is trading higher by 5% in the pre-opens session despite the company had lowered guidance for FY21 (Jun), sees FY21 (Jun) revs of $4 bln from $4.075 bln vs.

Peloton Interactive (PTON) Stock Rebounds a But: Telsey Reduces The PT

$4.11 bln S&P Capital IQ Consensus; sees ending Connected Fitness subscriptions of $2.275 mln, which is in line with prior guidance

Moreover, this morning, an analyst at Telsey Advisory Group reduced the price target on the stock to $120 a share from $150 and says that the preliminary financial impact of treadmill recalls not as bad as feared (83.78)

Analyst Dana Telsey commented, “Peloton had a strong 3QF21 performance as it invested in manufacturing and expedited transportation to narrow its order-to-delivery windows for Bike and Bike+, resulting in greater deliveries and subscriber growth. Customer engagement remained high as members worked out even more (26.0 classes vs. 17.7 last year) and the adoption of at-home fitness is becoming entrenched. Overshadowing the strong 3QF21 result was the commentary around the recalls of the Tread and Tread+ announced on May 5. We believe the financial impact of the recalls in 4QF21, estimated at a $165MM hit to revenues, is not as bad as feared. The majority of the impact ($105MM) is from the lack of Tread+ sales, with Peloton estimating a $50MM impact from refunds assuming ~10% of Tread+/Tread owners ask for a full refund, a lower figure than expected. Importantly, the company believes the Tread launch could proceed n the US this summer, potentially as early as July, earlier than we anticipated.”

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PTON stock crashed almost 18%on Wednesday the company made a voluntary recall of the treadmill models Tread+ and Tread

Anthony Gonzales

Biotech, Tech, and Crypto reporter Anthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.