Peloton initiated with a Peer Perform at Wolfe Research

Wolfe Research initiated coverage of Peloton with a Peer Perform rating with no price target as part of a broader sector note launching coverage of Global Internet names. The firm is positive on the company’s category innovator position at the intersection of tech, media, and fitness, and the benefits from a very loyal user base, along with its integrated business model that offers a high visibility subscription platforms, the analyst tells investors in a research note. Wolfe adds however that Peloton’s topline growth is likely to remain under pressure due to macro headwinds, an increasingly saturated total addressable market, intensifying competition, and distractions from recent leadership changes.