2020-09-16 07:47:33 | Apple entrance not barrier to Peloton's growth, says RosenblattRosenblatt analyst Bernie McTernan reiterates a Buy rating on Peloton Interactive (PTON) with a $130 price target following the company's investor day. The stock closed yesterday up $3.44 to $85.45. The analyst continues to believe Peloton has "significant growth opportunities ahead." It is still early days in technology disrupting the fitness market, with Peloton having a "similar opportunity and disruptive business model" as Netflix (NFLX) did nearly a decade ago, McTernan tells investors in a research note. The analyst sees global expansion and a certified pre-owned platform as the next catalysts for Peloton's growth. McTernan also views Apple's (AAPL) entrance into the market as a validation of the total addressable market versus being a barrier to Peloton's growth. Apple Fitness+, which requires an Apple Watch, does represent incremental competition, but will not impact Peloton's growth trajectory given its first mover advantage and "high quality" subscription and products that go along with a "vast and growing" content library, says the analyst. | |
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