Apr. 15 at 7:10 PM
$PTON UBS maintained a Buy rating and
$11 price target on Peloton after assessing the change in Section 232 tariff on aluminium. The new Section 232 tariff will now impose a 25% tariff on the value of imported hardware versus previously imposing a 50% tariff on certain metal content in the hardware. UBS noted that Peloton previously quantified around
$65M of total tariff exposure, and the firm estimates this tariff exposure given the change "could be more than
$100M, net of tariffs paid on components and also net of overall lower tariffs."