MKM Partners analyst Rohit Kulkarni upgraded shares of Peloton Interactive Inc. (NAS:PTON) to buy from neutral Monday, writing that the stock looks attractive after a selloff that pushed its shares down more than 30% since Feb. 4. Kulkarni expects that Peloton will be able to maintain momentum even as more people become vaccinated and start to increased their out-of-home activity. In the near-term, he is upbeat about the U.S. launch of the cheaper Peloton Tread in late May, while in the long run, Kulkarni points to potential benefits like commercial sales to gyms and hotels. He also argued that the company seems to be making progress with its supply-chain investments in air freight and expedited ocean freight, which were meant to address long wait times for delivery. Kulkarni said that negative comments about Peloton on the Better Business Bureau have dropped since Feb. 21, while his own Peloton Bike+ arrived more quickly than the expected delivery time. Peloton shares are down 10% over the past three months as the S&P 500 (S&P:SPX) has risen about 4%.
March 8, 2021, 8:31 a.m. EST