Financial Analysis Questions Reliability of Wall Street Price Targets for Peloton Stock
Peloton Interactive, Inc. (PTON) saw its stock price rise to $5.03, reflecting a 23.9% increase over the past month. Analysts have set an average price target of $8.19, indicating a possible upside of 62.8%, based on 16 forecasts that range from $5.00 to $20.00, with a standard deviation of $3.69. The highest projection anticipates a 297.6% growth, while the lowest suggests a slight decline of 0.6%. Experts caution that price targets may mislead investors. The Zacks Consensus Estimate for this year’s earnings has increased by 20.9, with one upward revision. PTON is currently rated as Zacks Rank #2 (Buy). Sheraz Mian, Zacks Investment Research's Director of Research, has pinpointed a stock with significant growth potential aimed at millennials and Gen Z, which reported nearly $1 billion in revenue last quarter.
Key facts
- Peloton (PTON) stock closed at $5.03.
- The stock gained 23.9% over the past four weeks.
- The mean analyst price target is $8.19, indicating 62.8% upside potential.
- 16 short-term price targets range from $5.00 to $20.00.
- The standard deviation of price targets is $3.69.
- The Zacks Consensus Estimate increased 20.9% for the current year.
- PTON has a Zacks Rank #2 (Buy), placing it in the top 20% of over 4,000 stocks.
- Researchers argue price targets often mislead investors and rarely predict stock movement.
Entities
Artists
- Sheraz Mian
Institutions
- Peloton Interactive, Inc.
- Zacks Investment Research
Sources
- Quartz —