$PTON acquisition candidate appoints CFO to CEO position. Competitor’s avg 5.6x 2023 EV/Rev, $PTON worth $58-$88/share (currently @ 2.1x).

$PTON seems to be getting ready for an acquisition. As evidenced by having it's founder/CEO step down and appointing former CFO of Spotify (in late 60s) to CEO position. The CFO is not a products guy but is better positioned to help with the process of an acquisition.

The most likely candidates are $AAPL (Apple Fitness integration) and $AMZN.

Peloton’s peers currently trade at an average of 5.6x 2023 EV /Revenue. $PTON trading at 2.1x 2023 EV / Revenue. Applying a range of EV / Revenue on Peloton’s FYE 2023 expected revenue yields an implied price per share of $57.79 – $87.75. This is a 60%-140% upside from the current price of $36/share.

Even if the acquisition occurs at the lower range of $58, that gives $PTON a 60% upside from here.


Activist investor Blackwells Capital presentation: https://www.blackwellscap.com/wp-content/uploads/2022/02/BW_Peloton_Presentation_Feb072022.pdf

Twitter Thread: https://twitter.com/garyblack00/status/1491006689100713984


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