Goldman Sachs analyst Heath Terry raised the firm’s price target on Peloton to $110 from $96 and keeps a Buy rating on the shares after the company announced the launch of two new hardware products: Bike+, a premium version of its existing bike, and a lower priced Tread. The stock closed Tuesday up 6%, or $4.97, to $85.60. The earlier than expected launch should allow Peloton to capitalize on the current demand for its products, its newly enlarged digital audience, and the ongoing uncertainty around out-of-home fitness options, Terry tells investors in a research note. The analyst continues to believe that the market is underestimating the long-term growth of Peloton. The current pandemic “both steepens the adoption curve and accelerates the company’s progress along it,” says Terry.
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