2020-02-26 15:54:30 PTON Peloton
Lyft
02/26/20 02/2615:54 02/26/2015:54 | Peloton jumps amid coronavirus fears as gym enthusiasts may stay homeShares of fitness product maker Peloton are trading higher on Wednesday after Needham analyst Laura Martin said the outbreak of coronavirus in South Korea, Italy, and Iran may prompt U.S. consumers to avoid public spaces like gyms and work out at home. VIRUS FEARS AND HOME WORKOUTS: "With new COVID-19 hotspots in South Korea, Italy, and Iran, we believe certain U.S. consumers will be less comfortable over time going to their gym and more likely to order a PTON bike to stay home. This may drive higher unit sales and subscription revenue in 2020 than are currently in our estimates. We make no changes," Laura Martin, an analyst at the investment bank Needham & Company, wrote in a note sent to clients on Tuesday. LOCKUP EXPIRATION AND EARNINGS: Despite reporting second quarter results that beat estimates in early February, shares have fallen below the stock's $29 initial public offering price. Ahead of the lock-up expiration, on this past Monday, MKM Partners analyst Rohit Kulkarni reiterated a Neutral rating and $28 price target on Peloton, saying that he thinks almost all locked-up Peloton shares have "significant" positive returns. Kulkarni added that he thinks this might lead to incremental downside pressure on Peloton shares over the near-term, pointing to underperformance by Lyft (LYFT) and Uber (UBER) recently around the times of their respective IPO lockup expirations. PRICE ACTION: Shares of Peloton are currently up almost 7% to $29.00 per share heading into the close. Peloton
Lyft
Uber
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