What happened
Shares of Peloton Interactive (PTON 5.42%) were higher again on Thursday, continuing a run that began earlier this week on news of an expansion and a favorable review from Wall Street.
As of 2:30 p.m. EST, Peloton's stock was up about 5.1% from Wednesday's closing price.
So what
There was no news of note on Peloton on Thursday. I think growth-stock investors are continuing to buy up shares in the wake of a couple of significant developments over the past week — and after the company's stock price fell more than 40% from its January high amid a sectorwide correction.
Image source: Peloton.
Peloton's stock surged on Tuesday after the company said it is expanding its business into Australia, with its regional launch expected in the second half of 2021. It's the connected-fitness company's first move into the Asia-Pacific region, potentially a source of significant growth.
Now what
Separately, Peloton's beaten-up shares have been getting second looks from Wall Street analysts. In a note on Monday morning, MKM Partners analyst Rohit Kulkarni upgraded Peloton to buy from neutral while maintaining his firm's previous price target of $130.
Kulkarni wrote that Peloton's investments in its supply chain seem to have bolstered product quality and reduced delivery times, as negative posts on the Better Business Bureau's website declined significantly over the past month. He's also positive on the prospects for the company's upcoming new connected treadmill, called the Tread, and on its efforts to increase business-to-business sales over the medium term.
