Canaccord Genuity upgraded PTON to "buy" from "hold"
Fitness stock Peloton Interactive Inc (NASDAQ:PTON) is surging today, up 10.2% at $6.69 at last glance, following an upgrade from Canaccord Genuity to "buy" from "hold" with a $10 price target. The firm cited the company's return to profitability as it "regains its footing."
Today's pop has Peloton stock headed for its best daily percentage gain since mid-February. The shares lost 27% over the last month, hitting five-month lows at the start of this week. However, the 320-day moving average moved in to catch the equity's pullback at the $5.50 level.
PTON's 14-day relative strength index (RSI) of 19.1 sits firmly in "oversold" territory, meaning a short-term rebound could already have been in the cards. Year over year, the equity is up 53%.
An unwinding of pessimism could extend the stock's bounce. Short interest has been building, and now represents 15.1% of the stock's available float. Plus, 18 of the 22 analysts in coverage still carry a "hold" or worse rating, leaving plenty of room for further upgrades.
When weighing in on the stock's next move, options look like a good way to go. Premium is reasonably priced at the moment, per PTON's Schaeffer's Volatility Index (SVI) of 85%, which sits lower than 80% of readings from the past year.