Long-Term Bull Case For Peloton

Jul. 13, 2021 10:36 AM ETPeloton Interactive, Inc. (PTON)6 Comments
Sachin Nair profile picture
Sachin Nair
22 Followers

Summary

  • Despite recent headwinds, Peloton remains the category leader in the connected fitness industry and is still in the early innings of disrupting the fitness industry.
  • My estimated value per share of ~$258 offers >100% upside from today’s price.
  • In this article, I provide an overview of Peloton before diving into the company’s unit economics, competitive edge, valuation, and reasons why the recent sell-off offers an attractive entry point.

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Afro young fitness girl using mobile phone while training on exercise bike at home.
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This article was written by

Sachin Nair profile picture
22 Followers
I am an investment consultant who advises large institutional clients such as endowments, foundations and pension funds. I have a deep interest in analyzing companies with high quality characteristics, long growth runway and potential to be multi-year compounders. My theses are typically underpinned by intrinsic valuation. I write to interrogate my ideas through research and to share what I find with others.

Disclosure: I/we have a beneficial long position in the shares of PTON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained in this article does not constitute financial advice. Individuals should do their own due dilligence, and consider their particular investment objectives and financial circumstances, before making any decisions.

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