Shares of Peloton Interactive (PTON 13.00%) rose 6.5% on Wednesday, following a series of analyst price-target hikes.
On Tuesday, Peloton announced a new, lower-priced treadmill designed to bring even more people into the company's ballooning, connected-fitness subscriber base. Peloton also slashed the price of its existing exercise bike and debuted a higher-priced model with additional features geared toward providing customers with a total-body workout experience.
In a press release, CEO John Foley said:
Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches, we'll be able to offer access to Peloton's best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home.
Wall Street liked what it heard. On Wednesday, analysts at Goldman Sachs, Bank of America, and Wedbush raised their price forecasts for Peloton's shares. Goldman Sachs analyst Heath Terry, who placed a Street-high $110 target price on Peloton's stock, expects these new products and price cuts to boost the company's growth in the year ahead.
Peloton is scheduled to release its fourth-quarter financial results on Thursday, Sept. 10. Investors can tune in to its earnings call at 5:00 p.m. EDT that same day to hear more from the company's management team regarding their new product strategy.