Peloton's stock drops toward a near 20-month low after Raymond James sees 'continued softness' in current quarter


Shares of Peloton Interactive Inc. PTON, -2.59% dropped 2.8% in afternoon trading Tuesday, putting them on track for the lowest close since May 4, 2020, after Raymond James analyst Aaron Kessler said he’s seen signs of “continued softness” in the December quarter. The at-home fitness company’s stock has plummeted 58.5% since it reported after the Nov. 4 closing bell a wider-than-expected fiscal first-quarter loss as revenue came up short of forecasts. Kessler also said he expects the company’s 2022 financial guidance could end up even more downbeat than when it was provided last month. “When Peloton provided guidance, we believe the company was assuming a return to stronger seasonality in the December quarter following the slower summer seasonality,” Kessler wrote in a note to clients. “Based on continued soft Google search trends data, we believe this could prove aggressive.” He affirmed the market perform rating he’s had on the stock since February, and estimates fair value for the stock at $38. In comparison to Peloton’s stock woes, shares of fitness equipment maker Nautilus Inc. NLS, -0.89% have plunged 44.0% since Nov. 4, fitness center operator Planet Fitness Inc.’s stock PLNT, -0.47% has slipped 0.8% and the S&P 500 SPX, -0.14% has gained 2.2%.

Source: Marketwatch

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