Please select the second broker
Peloton (PTON) up 11% on $420m deal to buy Precor
Peloton (PTON) surged to a record high after it agreed a $420m deal to acquire rival Precor in a move that analysts believe will expand its commercial reach.
Peloton (PTON) recorded a seventh straight session of gains on Tuesday (22nd December) as it rallied 11.65% to a record high on the news of its $420m acquisition of Precor.
Late on Monday (21st December), Peloton said that it was now positioned to “lead the global connected fitness market” after completing a deal for rival Precor, which is expected to close in H1 2021.
KeyBanc Capital Markets said that the move was “supportive of long-term growth” as analyst Edward Yruma added $25 to a new $185 price target.
The acquisition of Precor will help Peloton, which specialises in exercise equipment, to expand its reach into a range of commercial spaces, including hotel gyms and fitness centres.
Yruma added: “Peloton remains highly supply constrained and the addition of 625k square feet of U.S. manufacturing capacity should provide increased supply chain flexibility and increase CF device margins over time.”
It also set PTON up for another day of steady gains as the company continued its recent streak of closing higher.
After surging out of the gate on Tuesday, Peloton eventually finished up 11.6% at $161.21.
It is a quick rebound for Peloton after it slumped to a December low two weeks ago on news of the vaccine rollout.
Stay-at-home stocks appeared to struggle for traction during that period, but with a spike in cases and a long winter expected, bullish investors see no reason not to buy into PTON right now.
Analysts at TheStreet have advised those looking into the stock to keep an eye on its movement as a rise above $166.23 could lead to even more gains.
During the last week, the run of gains has seen Peloton climb 36%.
Scam Brokers, Broker Complaints
Are you aware of a scam broker or want to make a broker complaint?
We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.
We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.
We use the information you give us to decide if we want to continue to promote a broker on our site.
Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.