$Peloton Interactive (PTON.US)$ Raymond James analyst Aaron ...
$Peloton Interactive (PTON.US)$ Raymond James analyst Aaron Kessler maintained an "equal weight" rating on Peloton, citing weak demand and signs of rising costs, but did not give an explicit price target, with a fair value estimate of $38 a share.
Kessler noted that Google searches showed continued weak demand for Peloton's products during the year-end shopping season, with searches in the U.S. down 30% in the December quarter from a year earlier and 31% from the previous September quarter.
The analyst said it still believes the market was overdrawn early on during the pandemic, so sales growth in the year-end shopping season did not meet expectations, adding that the company's Q2 and full-year guidance for FY2022 may be too optimistic.
Kessler noted that Google searches showed continued weak demand for Peloton's products during the year-end shopping season, with searches in the U.S. down 30% in the December quarter from a year earlier and 31% from the previous September quarter.
The analyst said it still believes the market was overdrawn early on during the pandemic, so sales growth in the year-end shopping season did not meet expectations, adding that the company's Q2 and full-year guidance for FY2022 may be too optimistic.
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