Peloton Interactive (PTON) Stock Sees Huge Recovery From Lows: A Bullish Sign?

Peloton Interactive (NASDAQ: PTON) stock surged 8.9% after the exercise at home stock received endorsement from JPMorgan. JPMorgan had an overweight rating in the stock and this is just an endorsement and not an actual upgrade or sentiment change. Instead, JPMorgan is validating support for Peleton after some analysts downgraded the stock following injuries associated with its treadmills which sparked a recall at the beginning of the month.

JP indicated that the company has fixed manufacturing issues on the equipment that resulted in the recall. Demand for the Tread+ product is still strong despite the issues and JPMorgan praised the decision to construct a factory in Ohio to address product supply concerns and order fulfillment delays.

It is important to note that the construction of the treadmill and bike factory will take time before it is complete. Although Peloton will commence development and spending on the $400 million investment in the summer at least it is progress. Treadmills and new bike production will commence before 2023. In the coming months, PTON will be worth watching.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony 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.