Goldman downgrades Peloton to Neutral on valuation, guidance risk

Goldman Sachs analyst Heath Terry downgraded Peloton Interactive to Neutral from Buy with a price target of $140, up from $138. The shares closed Wednesday down $7.63 to $124.30. The analyst still believes in the long term opportunity at Peloton and expects the pandemic will continue to "accelerate and steepen" the adoption curve for its "leading" connected fitness products. However, with the shares up 458% since October 21, 2019, much of the near term opportunity is priced in, Terry tells investors in a research note. Further, the analyst sees "some risk" to Peloton's December guidance due to shipping delays caused by congestion at the Port of Los Angeles, which the company notified customers of recently. This could cause some volatility and a better entry point for the shares, says Terry.