One of the most violent movers among large-cap tech stocks this past week has been Peloton (NASDAQ:PTON). Fortunately for investors, most of these moves have been to the upside, with PTON stock surging more than 44% over the past five trading days. Today’s 27% gain is certainly a big contributor to this increase.
Now, there are a number of reasons for this impressive performance. Peloton stock, which traded at more than $155 at its 52-week peak, can now be had for under $38. That’s after today’s rally. Accordingly, there are likely a large number of growth investors looking for beaten-down stocks to buy right now.
Aside from dip buying, there have been rumors that Peloton could be up for sale. Various reports suggest both Amazon (NASDAQ:AMZN) and Nike (NYSE:NKE) could be in the running for an acquisition. Indeed, this takeover speculation has boosted this stock greatly, given the premium that would likely be required to get a deal done.
Peloton is still a company with some impressive technology and a strong user base. While the company’s numbers are declining, and production issues and layoffs are what many investors focus on, this is a company that has seen impressive growth in the past. With a partner, perhaps this growth could return.
Let’s dive into some analyst PTON stock price predictions.
Experts Weigh In on Where PTON Stock Is Headed
In addition to the aforementioned catalysts, JPMorgan analyst Doug Anmuth suggests in a research note that Peloton’s new CEO, Barry McCarthy, could be a game-changer. With a fresh perspective, this analyst believes that Peloton’s restructuring could drive growth in the near term. Accordingly, Anmuth placed a $50 price target, along with an overweight rating, on this stock.
Deutsche Bank analyst Chris Woronka also provides a buy rating on PTON stock, with a slightly lower price target of $44 per share. Again, the company’s prospective restructuring and the recent changes the company has made could provide upside, particularly should a potential takeover take place. That said, Woronka’s lower price target appears to reflect a weaker outlook for Peloton, given its recent guidance.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
