Peloton Interactive slides after CPSC action on treadmills
Apr. 19, 2021 8:02 AM ETPeloton Interactive, Inc. (PTON)PTONBy: Clark Schultz, SA News Editor18 Comments
- Shares of Peloton Interactive (NASDAQ:PTON) are sharply lower in early trading after the CPSC warns on the company's treadmills.
- Bank of America points to two risks for PTON from the development. The firm says the need for implementation of additional safety features could delay launch, although that it called unlikely given Peloton’s public response to the CPSC. There is also some publicity risk from Tread+ injuries seen that could impact demand for the new Tread.
- "We think Peloton can work out a solution to address concerns on Tread+ (with a new software-enabled, back-up access code being developed and other solutions possible)."
- BoFA still sees Peloton as one of the top long-term penetration growth stocks in its coverage group, but drops its price objective to $150 based on a forecast for 25M long-term subscribers vs. a prior forecast for 30M.
- Shares of Peloton are down 7.19% premarket to $107.85 following the CPSC action.