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DJ Peloton Stock Gets A Downgrade From Raymond James After Earnings -- MarketWatch

· 02/05/2021 10:23
For more from MarketWatch: http://www.marketwatch.com/newsviewer

Raymond James analyst Aaron Kessler downgraded shares of Peloton Interactive Inc. (PTON) to market perform from outperform Friday, following an earnings report in which the companyshowed a continuation of strong demand for its exercise bike (http://www.marketwatch.com/story/peloton-tops-1-billion-in-quarterly-revenue-for-the-first-time-but-higher-shipping-costs-weigh-on-outlook-11612473973) but also sustained delivery delays. Shares are down 7.5% in Friday morning trading. Kessler worries that demand for Peloton equipment could "soften somewhat" once social-distancing restrictions ease upon further progress in vaccine distribution. While he still has a long-term positive view on the company's fundamentals, he argued that the stock looks fairly valued trading at about 26 times his expectations for calendar 2021 gross profits and 21 times his expectations for calendar 2022 gross profits, as of the publication of his note before trading began Friday. Peloton shares have gained 23% over the past three months as the S&P 500 has risen 11%.

-Emily Bary

(END) Dow Jones Newswires

February 05, 2021 10:23 ET (15:23 GMT)

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