Peloton could soon have over 3 million subscribers according to Morgan Stanley

Peloton (PTON.US) stock fell slightly on Friday despite positive comments from Morgan Stanley (MS.US). Investment bank believes the number of subscribers which are using its remote fitness classes may top 3 million in the third quarter therefore decided to maintain an Equal Weight rating on the stock and has a price target of $32.00.

Analyst Lauren Schenk drew this conclusion from the firm’s new Peloton Subscriber Website Activity & Traffic Tracker, which showed that for the March quarter the company attracted 264k Connected Fitness customers, which beat management’s expectations of 160k and market projections of 200k.  Google search data suggests a potentially even better result, however continuing declines in overall web traffic are a concern. Last month this metric plunged over 30% YoY, worse than January's drop of 15%, Schenk said.

Peloton (PTON.US) share price has been moving lower for over a year now and has lost 85% of its value and even news regarding potential; takeover deal only managed to cause short lived upward correction. Nevertheless as long as price sits below the downward trendline, further downward move is the base case scenario. Potential target for sellers can be found around $17.60. On the other hand, if buyers manage to regain control and break above the aforementioned trendline,  then a larger upward move may be on the cards. Potential target for buyers is located around $67.00 which is marked with the upper limit of the 1:1 structure. Source: xStation5