Peloton Interactive: Oppenheimer Sees Revenue Growth Rebounding

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Peloton Interactive($NASDAQ:PTON) Inc is an American interactive fitness platform that combines hardware, software, and content to connect people through technology. The company offers a variety of fitness options that include running, cycling, strength training, and yoga. The company’s flagship product is a stationary bike that allows users to stream live and on-demand classes. The bike is equipped with a 22-inch HD touchscreen that lets users see their metrics and the instructor. The treadmill has a similar set-up to the bike, with a large screen that streams classes. The company has seen success with its fitness-as-a-service model and is expanding its offerings to include more content and products. Oppenheimer analyst Brian Nagel and team said they “optimistically” anticipate revenue growth to rebound to the upper-single/low-double digits rate. Peloton’s new fitness-as-a-service offering is seen a potential incremental sales driver for PTON.

Stock Price

On Monday, shares of Peloton Interactive Inc opened at $9.70 and closed at $9.90, up by 1.8% from its previous closing price of $9.70. He also believes that the company’s international expansion, new product launches, and growing content library will drive strong growth in the future. With a strong product lineup, growing international presence, and strong content library, Peloton is well-positioned for continued growth in the years ahead.

VI Analysis

Peloton Interactive, Inc is a company that designs, manufactures, and sells fitness products. The company is best known for its Peloton line of exercise bikes, which come with an attached screen that allows users to take classes remotely. Peloton’s fundamentals reflect its long-term potential. The company has strong growth prospects, but is only medium-sized in terms of assets and weak in terms of dividends and profitability. Peloton is classified as a “rhino” company, which means it has achieved moderate revenue or earnings growth. Due to its moderate growth rate, Peloton is less risky and volatile than other companies that pursue a more aggressive growth strategy. However, Peloton has a low health score of 2/10, which means it is less likely to be able to pay off its debt and fund future operations. This is something investors should take into account when considering investing in the company.

Summary

The company sells Peloton-branded indoor cycling bikes and treadmills, as well as a subscription-based content service that offers live and on-demand classes that are streamed through its app. Despite the slowdown in growth, Oppenheimer analyst Brian Schwartz is bullish on Peloton’s long-term prospects and believes that the company’s revenue will rebound in 2021.