We all knew that exercise equipment maker Peloton (NASDAQ:PTON) wasn’t exactly in the best shape as an overall operation. The former pandemic darling responded to its heady new status as though it were the new normal, little realizing that, once gyms reopened, it would be much less necessary. However, new reports suggest that Peloton might be making a comeback.
The biggest reason for the tick up so far seems to be focused on some new data from Yipit, a research firm. Yipit discovered that Peloton is starting to see some subscribers coming back and that Peloton’s churn rate is starting to stabilize. That’s good news; Peloton isn’t hemorrhaging cash anymore and might be starting to get a flow back into its coffers. That’s especially welcome given the losses Peloton incurred after missing out on orders, building new production capabilities to accommodate those orders, and then losing the orders when gyms reopened.
Analysts are still on Peloton’s side here, if only just. With seven Buy ratings, 11 Holds, and one Sell, Peloton stock is considered a Moderate Buy by analysts. Further, with an average price target of $11.75 per share, it comes with 42.86% upside potential as well.