By Dhirendra Tripathi
Investing.com - (NASDAQ:PTON) jumped nearly 13% Tuesday, boosted by Monday’s announcement that it would expand into Australia.
The stock rose almost $13, to $114, a trifle lower from the day’s high of $115.50 so far. Adding to the investor sentiment was an upgrade by MKM Partners analyst Rohit Kilkarni, who now has a ‘buy’ rating on the stock with a price target of $130.
The company’s market cap neared $30 billion after the surge.
The New York-based fitness equipment maker was a big beneficiary of the work-from-home routine that Covid-19 forced on people. Blending fitness with technology and entertainment, the company has attracted customers in hordes who have found its platform giving them a feel similar to the studio-style environment.
Peloton has disrupted the fitness industry by developing a first-of-its-kind subscription platform that combines equipment, proprietary networked software, and streaming digital fitness and wellness content. Riding on this, the company has been able to develop a robust user base of 4.4 million across the U.S., Canada, the U.K. and Germany.
Peloton's official launch in Australia is slated for the second half of 2021, where consumers will be able to purchase the Peloton Bike and the Peloton Bike+ online or through the brand's physical retail showrooms across key Australian cities, including Sydney and Melbourne.
The Australian consumers will be able to choose workouts and curated playlists featuring artists like Beyoncé and The Beatles.