Peloton Interactive (PTON) PT Raised to $120 at Stifel as Subs Break 1M

Stifel analyst Scott W. Devitt raised the price target on Peloton Interactive (NASDAQ: PTON) to $120.00 (from $72.00) after the company reported Revenue +172% y/y in the quarter and added 205k net CF subs in the quarter to reach 1.09mm subs (Street 1.09mm). Guidance was broadly ahead of Street expectations. With a substantial majority of F1Q underway and delivery / backlog visibility, we’d expect somewhat limited variance versus September quarter guidance, which calls for ~234k CF net adds, +218% y/y revenue growth (midpoint), 41% GM, and 11.7% adj. EBITDA margin (midpoint). The company entered F1Q with a backlog of $230mm Bike deliveries in all geographies as demand continues to outpace supply.

The analyst maintained a Buy rating, stating "Peloton has a robust catalyst pipeline ahead as it brings its new better-best product strategy to market, further penetrates its international markets, significantly expands capacity, broadens categories across its compelling content offering, and likely has a few more items in the back pocket to spare".

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