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.
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.
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.