Peloton Rumored To Announce $3,000 Treadmill, $1,900 Bike

Shares of Peloton Interactive PTON have been on an impressive run in 2020 thanks to increased demand for its interactive workout products amidst gym shutdowns from Covid-19.

What Happened: Bloomberg reports Peloton will announce a new Treadmill that will retail for less than $3,000. This is a big jump for Peloton since the current Peloton Tread is priced at $4,295. The new version is said to be smaller and look similar to a standard treadmill.

The company’s original treadmill will be sold as Peloton Tread+.

The report also claims Peloton will introduce a new stationary bike that will cost more than the company’s existing bike that retails for $2,245. The new stationary bike will be called Peloton Bike+. The company’s previous Peloton Bike will drop its price to $1,900.

What’s Next: Bloomberg says Peloton will likely announce the new products and price cuts ahead of earnings. Peloton is set to report fourth quarter and full fiscal earnings on Thursday, Sept. 10, after the market closes.

Goldman Sachs analyst Heath Terry recently raised his price target on Peloton shares from $84 to $96. Terry sees Peloton reported 208,000 new subscribers in the fourth quarter. Peloton has said it expected to add 154,000 to 164,000 subscribers in the fourth quarter.

PTON Price Action: Shares of Peloton were down 1% to $81.24 on Friday. Shares are up 190% in 2020.