Peloton PT Raised to $72 a share by Stifel
Peloton has changed the fitness industry forever, and demand for the connected fitness bike will remain elevated over the next several quarters, according to Stifel analyst Scott Devitt. The firm raised its price target to $72 a share from $62.
Delivery windows: Devitt points to the wide order-to-delivery time periods as an indicator of sustained demand throughout the summer. Across major metropolitan areas in the U.S., delivery times on average fell only to 7 weeks, compared to 8-9 weeks in the fiscal third quarter. For reference, pre-COVID delivery times were usually a couple of weeks.
“It’s fairly clear the longer delivery windows are a positive indicator of continued healthy delivery backlog, and potentially indicative that September quarter deliveries are nearly fully booked,” said Devitt.
Looking ahead: Stifel estimates Peloton will report about 1.1 million Connected Fitness subscribers in the current quarter, up 24% from the previous quarter. Despite the rapid growth, Peloton is still just at the surface of its total addressable market. Stifel says 1.1 million CF subs “implies a <10% penetration of the addressable “core demo” with 10mm households.” The core demo is defined as ages 35-54 and $150k+ in annual household income.
