Published on 30 Aug 2021 on Entrepreneur via Yahoo Finance

Should You Buy the Dip in Peloton?

Shares of interactive fitness platform provider Peloton (PTON) have plunged in price over the past few months due to the company’s treadmill recalls over safety concerns. So, is it wise to buy the stock now as the company plans to expand in Australia? Read on.

One of the largest interactive fitness platform providers, Peloton Interactive, Inc. (PTON), announced plans in May to build its first U.S. factory in Ohio. It announced plans in March 2021 to expand in Australia. However, the New York City-based company has been facing a backlash over its treadmills’ safety. Its stock has lost 15.8% in price over the past six months and 14% over the past month to close yesterday’s trading session at $101.48.

Yesterday, the company resumed selling the lower-end version of its treadmill—its $2,495 Tread product—across the United States, United Kingdom, and Canada. However, sales of its higher-end Tread+, priced at $4,295, are still on hold. As a result, BMO Capital Markets analyst, Simeon Siegel, cut PTON’s price target to $45 per share.