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Intra-quarter Data Points Largely Negative, Evercore ISI Sees Risk to FQ3 Estimates -Breaking

by Mike Robinson

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© Reuters. Peloton (PTON): Intra-quarter Data Points ‘Largely Negative’, Evercore ISI Sees Risk to FQ3 Estimates

Shweta Khajuria, Evercore ISI analyst, notes that the intra-quarter data points for Peloton (NASDAQ 🙂 are mostly negative. This proves that it may take some time until a new CEO is able to turn things around.

The analyst perceives this as a negative risk for the Street consensus of Connected fitness Gross Profit for Q3. More specifically, the analyst notes that ˜going to the gym comfort levels increased by 19ppts from February 11 to March 17.”

We view these rising comfort levels for physical gyms as a growing headwind for PTON, ahead of a full reopening as consumers reconsider returning to gyms and going out to malls/movies/restaurants, Khajuria said in a client note.

Analyst reiterated his “In Line” rating and set a price target of $42.00 for each share.

We believe PTON shares will remain range bound in the short-to-mid term as PTON faces decreasing consumer demand due to increased competition, high equipment prices, seasonal slowdowns in marketing spending, and a mix shift in consumer spending towards experiences. Although we feel more optimistic now that CEO McCarthy is at the helm of PTON, it will be a while before any meaningful changes are made at PTON,” Khajuria stated.

Yesterday’s closing price of Peloton stock was $28.44

By Senad Karaahmetovic

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