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© Reuters. KeyBanc cautious on Peloton (PTON) as near-term growth rate remains pressured
By Senad Karaahmetovic
KeyBanc analysts initiated research coverage on Peloton Interactive (NASDAQ:PTON) with a Sector Weight Rating.
While Peloton’s new management led by CEO Barry McCarthy has managed to address some near-term concerns, the analysts remain cautious.
“We think the concoction of a macro turbulence, financial distress, and unproven/margin dilutive initiatives pressures the NT growth rate of the subscriber base and the brawn/uniqueness of the brand. While we see PTON contending with one of the more dire recovery paths in leisure, current valuation amid obscure initiative efficacy/guidance form the basis of our SW,” they explained.
Within the broker’s Leisure & Fitness Brands coverage, YETI (NYSE:YETI) and Garmin (NYSE:GRMN) also earned a Sector Weight rating.
Peloton stock is up 24.7% year-to-date (YTD).
