Here's Why Peloton Stock Pulled Back Again Today
Shares of exercise-equipment company Peloton Interactive (NASDAQ: PTON) pulled back again on Friday after a sharp price-target reduction from an analyst. As of 11:50 a.m. ET today, Peloton stock was down 6% even though the market averages were up sharply.
Arpine Kocharyan, an analyst with UBS, has a sell rating on Peloton stock. And today, she aggressively lowered her price target from $13 per share to just $8, according to The Fly. To her credit, she's consistently held a sell rating on Peloton stock and has lowered her price target as it's fallen. In other words, Kocharyan's move today is in line with her previous stance.
Specifically, Kocharyan doubts Peloton can return to sales growth. And she's unsure that the company can successfully execute its cost-saving initiatives and consequently grow its profits. With so many question marks with Peloton, it's not a surprise to see the market react negatively toward the stock after Kocharyan's comments.
Source Fool.com
