PTON stock is up more than 34 percent since I published this article on detecting bullish options flow in the stock.
On November 29, 2019, we have again detected bullish options flow in PTON stock:
10,764 calls traded which was 4x the expected amount, and implied vol increased almost 10 points to 78.30%. Jan-20 33 puts and Dec-19 36 calls are the most active options, with total volume in those strikes near 6,200 contracts.
On November 19, 2019, JPMorgan reiterates Overweight rating on Peloton after management meetings. After hosting investor meetings with management, JPMorgan analyst Doug Anmuth reiterates an Overweight rating on Peloton with a $34 price target. The company has “multiple near-term drivers,” including the Bike Home Trial, new marketing for 0% financing, new 0% Tread financing for three years, and this week’s launch in Germany, Europe’s largest fitness market, Anmuth tells investors in a research note. The analyst continues to believe Peloton is well positioned to disrupt the fitness industry and he sees “significant runway for profitable growth.”
Most investors are betting that Peloton’s new treadmill product line will greatly improve sales beyond just the bike offering.
Bernstein analyst Jamie Merriman told investors in a research note on November 14, 2019, that given the high price point of Peloton’s connected treadmill Tread, she forecasts limited sales volumes over the next five years, expecting cumulative sales of ~500K compared to ~3.3M bikes additional bikes sold by 2024. However, a lower priced treadmill could generate higher sales dollars, Merriman says. She keeps an Outperform rating and $29 price target on the shares.