Peloton (PTON, $129.17) gets price target boost from Truist Securities analyst

Peloton Interactive  got price target raise from Truist Securities analyst Youssef Squali.

Squali boosted his share-price target on the exercise-equipment/software company to a Wall Street high $144 from $115. He has a buy rating on the shares.

"Shelter-in-place practices have created the perfect environment for greater adoption of home exercise equipment, and for Peloton (#1 sought-after brand) through a combination of high quality products/service, easy financing, greater brand awareness and a strong logistics platform," Squali wrote in a commentary.

Truist in a survey found that more than half of respondents have canceled their gym memberships or plan to do so. More than half also said that they expected to exercise more at home, even after the coronavirus pandemic ends.

According to Tickeron, 

Momentum Indicator for PTON turns positive, indicating new upward trend

PTON saw its Momentum Indicator move above the 0 level on September 18, 2020. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 16 similar instances where the indicator turned positive. In 15 of the 16 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.

Current price $129.13 is above $68.47 the highest resistance line found by A.I. Throughout the month of 09/11/20 - 10/13/20, the price experienced a +56% Uptrend. During the week of 10/06/20 - 10/13/20, the stock enjoyed a +18% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) for PTON just turned positive on September 18, 2020. Looking at past instances where PTON's MACD turned positive, the stock continued to rise in 8 of 8 cases over the following month. The odds of a continued upward trend are 90%.

Following a +6.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where PTON advanced for three days, in 65 of 70 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.

The Aroon Indicator entered an Uptrend today. In 66 of 70 cases where PTON Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.

Bearish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.

PTON broke above its upper Bollinger Band on September 21, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 81%. During the last month, the daily ratio of advancing to declining volumes was 2.86 to 1.

The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. PTON’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: PTON's P/B Ratio (22.48) is slightly higher than the industry average of (5.29). P/E Ratio (0.00) is within average values for comparable stocks, (98.07). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (2.31). Dividend Yield (0.00) settles around the average of (0.57) among similar stocks. P/S Ratio (10.47) is also within normal values, averaging (7.83).

The Tickeron SMR rating for this company is 87 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PTON’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.

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