PTON - Peloton: One Of 2020's Best Performers Could Repeat In 2021
- PTON's +434% 2020 performance on the backs of pandemic, stay-at-home boosts could repeat during 2021 with another strong year possible.
- CF subscribers have risen at a triple-digit CAGR historically and could be set to do so again in FY21, rising from 1.09 million to 2.2 million or more.
- PTON has strong engagement numbers and a deep content moat, with more content added weekly.
- International expansion from new product launches and the Precor acquisition setting up commercial expansion provide long-term synergies.
- Affordability, churn and focus on CF sub growth over profitablity are some risks, although valuation could sustain a 20x sales multiple to $80B.
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Peloton: One Of 2020's Best Performers Could Repeat In 2021