| 2021-04-19 07:36:49|
PTON 07:36 04/19 04/19/21
Peloton should be bought on pullback from safety warning, says JPMorgan
JPMorgan analyst Doug Anmuth recommends buying shares of Peloton Interactive on weakness following the Consumer Product Safety Commission warning on the Tread+ over the weekend. Since Peloton publicly informed its community one month ago about a tragic accident involving a child and the Tread+, the company has taken numerous additional steps to ensure the safety of the product, Anmuth tells investors in a research note. The company emphasizes that the Tread+ is safe when its warnings and safety instructions are followed, and that it will neither stop selling nor recall the product, adds the analyst. Further, Anmuth does not expect recent incidents to further delay Peloton's launch of the new lower-priced Tread in the U.S., anticipated to go on sale May. He reiterates an Overweight rating on the shares, which are trading down 8% to $107.29 in the premarket.