Peloton Interactive, Inc. (PTON)

Peloton's debt is a major concern. How are they managing it?

Peloton Interactive (PTON) has reportedly hired JPMorgan to help it raise $850 million in a new loan sale to settle its debts. The fitness equipment brand was once considered to be a "pandemic darling" when consumers were stuck at home at the beginning of the COVID-19 pandemic in 2020. BMO Capital Markets Managing Director and Senior Analyst Simeon Siegel comments on Peloton's ability to manage its current debt and where it should focus its attention to retain consistent consumers. "Some of these companies take a breath and they say, 'okay, we need to restructure,' but in the same sentence they say 'but we're still going to grow,'" Siegel tells Catalysts. "That's dangerous and it rarely works. There's a time when companies are supposed to grow, and there's a time when they're supposed to focus on value and improving their brand and restructuring. I think Peloton is very much in that latter phase, and that's not a problem given where the stock is today. I think you could make that conversation, that argument, but they need to want to do it." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Luke Carberry Mogan.