By Christiana Sciaudone
Investing.com -- Peloton (NASDAQ:PTON) rose about 5% after Credit Suisse (SIX:CSGN) joined the fray in favor of the pandemic winner.
Analyst Kaumil S. Gajrawala initiated coverage on Peloton with an outperform rating and a price target of $164, StreetInsider reported.
Peloton's lost a little shine with shares dropping about 15% since the start of the year, after rallying almost 500% in 2020 as we got stuck at home amid Covid and sought outlets. The demand for at-home exercise equipment and, in Peloton's case, the accompanying cheerleading, is so out of hand that its orders are backed up, with a weeks-long wait list. To address that, the company bought Precor, a U.S. maker of exercise equipment, among others.
With the return of life outside our front doors, there has been concern over Peloton's ability to maintain its dominance in our lives.
But the company is at the forefront of major secular trends against the backdrop of a sizable market, according to Gajrawala.
"Peloton has built a brand and achieved success with a narrow product offering (bikes & treadmills in a few markets ) while under severe supply constraints," the analyst wrote in a note. "In the medium term, we expect the equity story to evolve, incorporating an expanded value proposition (new equipment, new content, new countries ) that appeals to more customers: an expanding addressable market."
Some 19 analysts say buy the stock, three say hold and two say sell, according to data compiled by Investing.com.