Shares of Peloton Interactive Inc. PTON,
fell 0.7% in midday trading, after 2.1% on Thursday, when BofA securities analyst Justin Post reiterated his bullish stance on the at-home fitness business as he reassured investors not to to worry about a Bloomberg report that Apple Inc. AAPL,
was planning to launch a rival fitness app. “We think Apple’s new fitness app could compete with Peloton’s digital single subscription offer (although we expect first class and library selections to be inferior), but will have a limited impact on Peloton’s affiliated fitness base that drives the bike. Peloton used as a tread, ”Post wrote in a note to clients. “We note that Peloton’s digital subscription revenue was only 1% of total revenue [fiscal]3Q, where the greatest value of digital subscribers is potential conversion for affiliate fitness subscribers. “He kept his buy rating and his share price target at $ 72, which is 10.4% above current levels. On Thursday, after the Bloomberg report came out, the stock initially fell as much as 2.9% intraday before it jumped to close 2.1% .On Friday, the stock was as much as 3.1% earlier in the session before the course reversed.The stock has more than doubled (up 129.7%) year to date to, while the S&P 500 SPX,
has increased 4.5%.
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