Exercise equipment maker Peloton Interactive, Inc. (NASDAQ: PTON) recently revealed that it will have a new Chief Financial Officer (CFO) from June 13.
Following the news, shares of the company rose marginally to close at $12.52 in Monday’s extended trading session.
Details of the Appointment
Liz Coddington will replace Jill Woodworth as the new CFO of the company. Woodworth will remain with the company as a consultant on an interim basis and help prepare FY22 financial results.
Coddington has worked as a Vice-President of Finance for Amazon Web Services. She has also held leadership roles at Walmart (NYSE: WMT) and Netflix (NASDAQ: NFLX).
Management’s Take
The CEO of Peloton, Barry McCarthy, said, “Liz is a deeply talented finance executive and will be an invaluable addition to Peloton’s leadership team. Having worked at some of the strongest and most recognizable technology brands, she not only brings the expertise needed to run our finance organization, but she has a critical understanding of what it takes to drive growth and operational excellence. I have seen her intellect, abilities, and leadership firsthand and am excited to work closely with her as we execute the next phase of Peloton’s journey.”
Stock Rating
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 15 Buys, 10 Holds and two Sells. PTON’s average price target of $22.58 implies that the stock has upside potential of 80.9% from current levels. Shares of the company have declined 88.6% over the past year.
Conclusion
Peloton recorded its highest quarterly loss in May. In such a scenario, the decision to appoint an experienced hand like Liz Coddington seems to be prudent.
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