Peloton initiated with a Buy at Deutsche Bank

Deutsche Bank analyst Chris Woronka initiated coverage of Peloton Interactive with a Buy rating and $76 price target. While there there are scenarios in which Peloton shares go lower from here, there are more scenarios that result in greater upside based on a “fundamental and unemotional analysis” of the company’s earnings power in a “normalized,” fully-reopened economic environment, Woronka tells investors in a research note. The analyst thinks the hybrid work model extends to fitness and that Peloton “has plenty of momentum to regain operationally.” If the stock “can regain its footing for fundamental reasons, it has quite a bit of room to run,” contends Woronka.