DA Davidson starts Peloton with Neutral rating ahead of IPO - InvestingChannel

DA Davidson starts Peloton with Neutral rating ahead of IPO

DA Davidson analyst Michael M.Y. Kawamoto initiated Peloton with a Neutral rating and $29 price target ahead of the Digital fitness company’s initial public offering, stating that Peloton has “impressive” topline growth, but market saturation and its ability to scale remain questions. Recent investments, along with “very robust marketing spend,” will keep profitability “muted” for at least the next few years, added the analyst.