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Peloton Interactive (PTON -5.0%) fell again on Friday as investors do not appear ready yet to buy into the company’s plan to try a new pricing strategy.
On Wall Street, the exercise services and equipment company still has plenty of supporters. Cowen reiterated an Outperform rating on PTON following the announcement of a new pricing model pilot. The firm remained confident that Peloton is still in the early innings of long-term transition to connected fitness.
“Underscoring the limited nature of PTON’s pricing test, customers will need to sign up either in-store or at Peloton studios, and it will not be available online, where the company presumably consummates the vast majority of hardware sales.”
Earlier this week, Peloton Interactive hired a new supply chain chief in an effort to improve the manufacturing process.
Read more about Peloton Interactive’s planned pivot under its new CEO.
Peloton (NASDAQ:PTON) traded as low as $21.45 earlier in the session as it threatened to fall below the prior all-time low of $21.33.
