In recent trading, shares of Peloton Interactive Inc (Symbol: PTON) have crossed above the average analyst 12-month target price of $7.76, changing hands for $7.94/share. When a stock meets its target price set by analysts, they often choose between two options: downgrade based on valuation or increase their target price. The choice typically hinges on the company’s recent performance and prospects for growth.
Understanding Analyst Predictions and Their Range
There are 16 different analyst targets within the Zacks coverage universe contributing to that average for Peloton Interactive Inc. However, this average represents a mathematical midpoint among varying opinions. Some analysts predict a low target of $2.50, while others see potential as high as $20.00. The variation in predictions is substantial, with a standard deviation of $4.085, indicating a clear range of expectations.
The Value of Analyst Consensus
Examining the average target price of $7.76/share provides insight into the collective wisdom of analysts rather than relying on a single viewpoint. With PTON now exceeding the average target price, this shift prompts investors to assess whether this marks a new beginning toward even higher targets or if the stock’s valuation has become too stretched to maintain its current price. Below is a table summarizing the recent analyst ratings for Peloton Interactive Inc:
| Recent PTON Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 3 | 2 | 2 | 3 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 15 | 16 | 16 | 15 |
| Sell ratings: | 0 | 1 | 1 | 1 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 2.79 | 2.95 | 2.95 | 2.85 |
The average rating in the table above ranges from 1 to 5, where 1 represents Strong Buy and 5 denotes Strong Sell. This analysis used data provided by Zacks Investment Research via Quandl.com. Stay updated with the latest Zacks research report on PTON — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
