NLS - Nautilus Could Become A Buyout Target If Growth Fails To Gain Traction
- Nautilus has benefited greatly from the COVID-19 pandemic.
- Management sounds upbeat and expects the company to reach $1 billion in sales by 2026, with 20% being attributed to its subscription-based platform JRNY.
- The growth story of Nautilus appears invalid as the company does not have superior technology and is late to the fiercely competitive digital fitness market.
- A continuation of the down-trend in share price and the strong hardware brands could make the company a buyout target.
- The thesis appears weak as managerial missteps could easily invalidate it. The current share price of $6.2 thus still seems too expensive to speculate on a buyout.
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Nautilus Could Become A Buyout Target If Growth Fails To Gain Traction