Shares of Peloton Interactive (PTON 1.93%) jumped on Tuesday after the home-based fitness equipment maker said it was expanding into Australia.
By the close of trading, Peloton's stock price was up more than 14%.
Australians will soon have a chance to buy Peloton's popular exercise bikes online and in stores across Sydney, Melbourne, and other major cities in the country. They'll also be able to subscribe to Peloton's fast-growing exercise class app.
The move will signify Peloton's entry into Asia's potentially lucrative fitness market. The launch is planned to take place in the second half of 2021.
"Health, fitness, and sport is a central part of Australia's DNA, which is why it was a natural decision to launch Peloton in Australia as our first foray into the Asia Pacific region," Peloton executive Kevin Cornils said in a press release.
With governments ramping up their coronavirus vaccination programs in recent weeks, many investors have sold the stocks of companies that have seen their sales rise during the pandemic. Peloton was caught up in this selling, and its stock price fell more than 40% from its highs in January.
However, some analysts say this sharp decline is now providing investors with an opportunity to pick up Peloton's shares on the cheap. For one, MKM Partners analyst Rohit Kulkarni raised his rating on Peloton from neutral to buy on Tuesday. Kulkarni highlighted the company's moves to accelerate the production and delivery of its bikes and treadmills. He also noted the potential for Peloton to ramp up commercial sales to corporate wellness programs, hotels, and gyms.
All told, Kulkarni sees Peloton's stock rising to $130 per share, or about 12% higher than its current price near $116.