Exercise bike maker Peloton (NASDAQ:PTON) is badly on the decline. But it may have a plan to pull itself back from the abyss and into the pink again. All it’s going to take is fixing up some old bikes and selling them at a discount. That’s right: refurbished bikes.
Peloton calls the program “Peloton Certified Refurbished”. It aims to offer a hefty discount for potential Peloton customers. A refurbished Peloton Bike will sell for $1,145, which is a $300 discount over the price of a new model. A Peloton Bike+, meanwhile, will now sell for $1,995, which represents a $500 discount against a new version. The All Access Membership program, however, will be sold separately.
Some might be concerned about quality, but that won’t be the case, Peloton assures. Vice President of Emerging Business & Strategic Partnerships, Amanda Shulman, noted that all the bikes in Peloton Certified Refurbished have been checked against several quality standards. That gives Peloton a chance to “…find these bikes a second home.”
Investors seem less certain. Analyst consensus around Peloton right now calls it a Moderate Buy. Its average price target of $12.22 per share affords it a 50.31% upside potential.
