Engulfed by controversy following the death of a child apparently caused by one of its exercise machines, Peloton Interactive (PTON 1.63%) is nevertheless a buy. So says Stifel analyst Scott Devitt, who on Monday reiterated his buy rating on the stock at a price target of $170 -- almost 58% above the most recent closing price.

It's a counter-intuitive move as the government's Consumer Product Safety Commission bluntly advised people over the weekend to stop using the Peloton Tread+, the product that allegedly caused the fatality. The Commission "believes the Peloton Tread+ poses serious risks to children for abrasions, fractures, and death," citing "multiple reports of children becoming entrapped, pinned, and pulled under the rear roller of the product."

A Peloton Tread+ in a neutral space.

Image source: Peloton Interactive.

It said that it is aware of 39 incidents of injury, including one death, resulting from use of the machine.

Peloton fired off a response, characterizing the recommendation as "misleading" and "inaccurate." It said that the Tread+ "is safe for the home when used in accordance with warnings and safety instructions."

Devitt believes Peloton will find a way to make Tread+ safer and will thus manage to keep it on the market. "We expect the issue regarding the Tread+ could end with a protective guard added to the end of the treadmill or a similar remedy," he wrote in a research note.

"While we don't believe the event will have lasting consequence for the company, the timing of it isn't great given the short-term vulnerability the stock has to increased human mobility ... we would be patient buyers of PTON shares on price pullbacks like [what] has been presented today," he added.

On Monday, Peloton was among the market's big losers, shedding nearly 7.3% of its value against only a 0.5% decline for the S&P 500 index.