Aaron Kessler, an analyst at Raymond James, downgraded the shares of Peloton Interactive Inc. PTON,
for market performance it outperformed Friday’s performance after a earnings report in which the company showed continued strong demand for its stationary bike, but also sustained delivery delays. Shares fell 7.5% on Friday morning trading. Kessler fears that demand for Peloton equipment may “soften a little,” as restrictions on social distance will ease over progress in vaccine distribution. Although he still has a positive long-term view of the company’s fundamentals, he argued that the shares appear to be highly valued being traded about 26 times their expectations for the 2021 calendar gross profit and 21 times their expectations for the company’s gross profit. 2022 calendar, as published in its note before the start of negotiations on Friday. Peloton’s shares have gained 23% over the past three months as the S&P 500 SPX,
increased by 11%.
