What happened

Shares of Peloton Interactive (NASDAQ:PTON) were falling 4% in morning trading Wednesday following yesterday's bounce on news of a deal with music entertainer Beyonce.

So what

Wall Street still sees healthy upside from the home fitness equipment maker, but an analyst at Rosenblatt Securities lowered his price target to $145 per share from $155, while a KeyBanc Capital Markets analyst reiterated his price target of $160 per share.

Man running on a treadmill while watching a fitness instructor on a screen

Image source: Peloton Interactive.

Those levels indicate 45% to 60% upside from where Peloton is trading, but the market may be second-guessing the heady gains because of the potential for COVID-19 therapies.

In addition to positive developments surrounding Pfizer's vaccine for the illness, Russia says its Sputnik-V vaccine is showing similar effectiveness with a 92% rate of protecting people, and Eli Lilly's COVID-19 antibody treatment was given U.S. Food and Drug Administration emergency approval to treat high-risk, nonhospitalized patients.

Such therapies, if broadly distributed, would allow gyms to reopen, dampening consumer enthusiasm for the home workout trend that accelerated during the pandemic.

Now what

It seems premature to throw a wet towel on Peloton Interactive, as availability of any vaccine remains still some time into the future and cities and states are once again tightening public assembly as cases of coronavirus spike.

While a deal with Beyonce probably didn't warrant Peloton's stock rising so much, neither are these developments good reason to drive it down.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.