Why Peloton Stock Fell Off the Bicycle Today
Despite the best efforts of Deutsche Bank, shares of stationary bike and treadmill maker Peloton Interactive (NASDAQ: PTON) took a tumble in Friday trading and are down 3% as of 11:30 a.m. ET.
In a note out this morning, Deutsche Bank announced it is initiating coverage of the hard-hit bicycle stock, assigning a "buy" rating and a $76 price target to shares that have lost more than 60% of their value over the last 12 months -- and basically predicting the stock will rise more than 75% over the next 12 months.
"It's never fun to lead off a Buy report with a 'patience required' asterisk of sorts," muses Deutsche in its report, which was covered on StreetInsider.com today. Nevertheless, "That's exactly what we find ourselves doing here," admits the analyst. And the reason Deutsche is doing this is that, troubled as Peloton may be, the analyst sees "asymmetrical risk/reward scenarios" in the stock.
Source Fool.com
