Peloton (PTON) – Get Report, the connected-fitness company that’s been a darling stock during the coronavirus pandemic, rose Tuesday as it said it formed a health-and-wellness advisory council.
The council “will work closely with the company as it continues to look at how it can positively impact the physical, mental and emotional well-being of its community of members,” the company said.
“Peloton will collaborate with the council, which includes five renowned doctors, researchers and other medical professionals from the fields of cardiovascular medicine, cardiopulmonary exercise, neurology and neuroscience, and draw on their knowledge and expertise to help inform product and content development, community-focused and social impact initiatives, research projects and more.”
Peloton shares recently traded at $82.43, up 7.5%. They have nearly tripled year to date.
Peloton’s exercise bikes and online fitness programs have proven hugely popular during the pandemic, as gyms have been closed and people have been stuck at home.
The company reported revenue surged 66% in the quarter ended March 31 from a year earlier.
Council members include cardiologist Suzanne Steinbaum, neurologist Richard Isaacson, neurologist Vernon Williams, physiology expert Aimee M. Layton and neuroscientist Jay Alberts.
Last week, Goldman Sachs analyst Heath Terry increased his share-price target for Peloton to a Wall Street high $96 from $84. He kept his buy rating.
Consensus estimates for Peloton’s growth and profitability in the near and long term are too low, Terry said.
He expects the company to report 208,000 net subscription additions for the fiscal fourth quarter ended June 30, compared with consensus expectations of 199,000.
