Raymond James says Peloton ad backlash worth monitoring, shouldn't affect sales
Raymond James analyst Justin Patterson said Peloton's latest U.S. ad campaign, "Gift That Gives Back," has received significant backlash on social media and he believes the "social outcries" and negative press about the advertising bears monitoring. However, he expects the ad will get pulled and noted that Peloton "has been a meme in the past" without it having hurt the company's trends. In addition, Peloton "got an ad right" as its U.K. ads are garnering 6.7M views over two weeks, which Patterson said is "dramatically more" than other recent Peloton ads there. The analyst, who does not think the U.S. ad backlash will do much to affect holiday sales, reiterated his Outperform rating on Peloton shares, which are down $3.40, or 9.2%, to $33.44 in Tuesday afternoon trading.