#Peloton #Stock #Pushes #Higher #BofA #Issues #Double #Upgrade #CEO #Change #Results
Key takeaways
- Peloton shares rose again Monday following a double rating upgrade from Bank of America Securities.
- The company’s first-quarter results beat expectations last week, and the company named a new CEO.
- Bank of America believes the new leadership can deliver $100 million in efficiency savings over the next few years.
Shares of Peloton Interactive (PTON) rose Monday after its strong first-quarter results prompted a double-digit upgrade from analysts at Bank of America Securities.
The bank raised its rating to “buy” from “underperform” and boosted its price target to $9 from $3.75 after the home exercise equipment maker beat analyst estimates and named Ford (F) CEO Peter Stern as its new chief executive officer (CEO). And the president.
Stern, who recently served As president of Ford Integrated Services and previously an executive at Apple (AAPL), he will begin his new duties on January 1, 2025.
The bank sees “significant opportunity” to reduce costs under Stern’s leadership, as well as increase device margins and increase subscription prices. Peloton’s operating expenses are “significantly higher” than comparable averages, according to the bank, and could generate $100 million in savings.
Peloton stock rose more than 4% during the day Monday and shares are up about 14% since the company reported its results before the market opened on Thursday.
#Peloton #Stock #Pushes #Higher #BofA #Issues #Double #Upgrade #CEO #Change #Results
