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Investing.com – Peloton (NASDAQ:PTON) stock fell close to 5% in Wednesday’s trading as Wedbush downgraded the stock to neutral with a $115 target, a level it hit during the session underway.
The brokerage earlier had an outperform rating on the stock with a $130 target.
Analyst James Hardiman pointed out that in a post-pandemic environment, users have several options to choose from for their workouts and hence he would wait to see how the fitness equipment maker responds to the changed dynamics.
“During this transition, we think a ‘neutral’ rating makes sense until we have better visibility on where underlying demand growth will shake out in the post-pandemic environment and we have better visibility on what investors will be willing to pay for this growth,” Hardiman noted, according to StreetInsider.
Fitness equipment makers have had a tricky time responding to consumer demands during the pandemic and after it.
While awareness for being fitter has increased and more people are now responding to that need, the use of the equipment, its type and the wear and tear in a public environment are on the minds of the consumer.
