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Home » Fitness » Why This Peloton Analyst Says An Apple Fitness Subscription Poses Little Threat – Benzinga

Apple Inc. (NASDAQ: AAPL) is reportedly planning to launch abundled servicefor subscription by October that includes a fitness app subscription for the higher end.

Although Apples fitness app would compete with Peloton Interactive Incs (NASDAQ: PTON) digital-only subscription offer, it may have a limited impact on the companys connected fitness base, according to BofA Securities.

The Peloton Analyst: Justin Post maintained a Buy rating onPeloton Interactive with an unchanged $72 price target.

The Peloton Thesis: Apples new fitness app will be available on the companys devices, like the iPhone, iPadand Apple TV, while Pelotons offerings are solutions for bikes and treadmills, Post said in a Friday note. (See his track record here.)

Pelotons digital-only subscription revenue represented only 1% of total revenue in the third quarter, he said, adding that the biggest value indigital subscribers for the company is their potential conversion to connected fitness subscribers.

"Longer-term, it is unclear whether Apple would partner with other at-home fitness hardware companies, or create its own proprietary bike/tread, though we think former is more likely than the latter."

Peloton's bikedelivery wait times suggest a robust order backlog, while BofAs app download data indicates that guided workout app downloads grew 220% year-on-year in July and areup 6% sequentially.

PTON Price Action: Peloton shares were down 0.59% at $65.32 at last check Friday.

Related Links:

Why Peloton's Stock Is Trading Higher Today

Apple Prepping Subscription Bundles To Boost Recurring Revenue: Report

Photo courtesy of Peloton.

View More Analyst Ratings for PTON View the Latest Analyst Ratings

2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Why This Peloton Analyst Says An Apple Fitness Subscription Poses Little Threat - Benzinga

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Home » Fitness » Why This Peloton Analyst Says An Apple Fitness Subscription Poses Little Threat – Benzinga