Why Peloton Stock Rode Higher Today
Shares of Peloton Interactive (NASDAQ: PTON) rode higher today, up by 6% as of 12:45 p.m. EDT, after Credit Suisse initiated coverage on the stock with an outperform rating and price target of $164, which represents 50% upside from yesterday's close. The positive sentiment seems to be overshadowing a separate downgrade from Evercore ISI, which dropped its rating on Peloton shares to in line (equivalent to neutral) and reduced its price target from $160 to $125.
Credit Suisse analyst Kaumil Gajrawala believes Peloton is at the "forefront of major secular trends" in the booming connected fitness market. The analyst is modeling for the consumer discretionary company to grow total subscribers to 3.1 million in fiscal 2021, and to 11 million by fiscal 2025.
Image source: Peloton Interactive.
Source Fool.com
