Once a stock market darling, Peloton Interactive (NASDAQ:PTON) has fallen far from its all-time highs after pandemic tailwinds faded. Indeed, the company has faced a growing number of problems since. Unfortunately, today’s news adds to that list of issues, as the Consumer Product Safety Commission (CPSC) announced a massive recall of 2.2 million exercise bikes. The recall concerns Peloton Bikes with the model number PL01, which were sold between 2018 and May 2023. As a result, PTON shares were trading lower at the time of writing.
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The CPSC recommends that users stop using the affected bikes immediately and get in touch with Peloton for a complimentary repair. To address the issue, Peloton is providing a no-cost seat post that customers can install themselves. Peloton Interactive has been informed of 35 incidents where the seat post broke and separated from the bike during use, resulting in 13 reported injuries. These injuries range from a fractured wrist to cuts and bruises caused by falling off the bike.
Nevertheless, Wall Street maintains a Moderate Buy consensus rating with an average price target of $11.75 per share on PTON stock, implying 67.74% upside potential, as indicated by the graphic above.
