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Peloton, Fiverr Slide on UBS Downgrades to Sell

Peloton traded at $145.76, down 7.64%; Fiver at $240.98, down 9.79%; and Chewy (also downgraded) at $106.10, down 1.86%.
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Shares of Peloton PTON, Fiverr  (FVRR) - Get Fiverr International Ltd. no par value Report and Chewy  (CHWY) - Get Chewy Inc. Class A Report all fell Tuesday, following downgrades by UBS from neutral to sell for the exercise hardware/software company, freelance platform and online pet supply retailer, respectively.

Peloton recently traded at $145.76, down 7.64%; Fiverr at $240.98, down 9.79%; and Chewy at $106.10, down 1.86%. UBS lowered its price targets to $124 from $158 for Peloton; to $190 from $267 for Fiverr; and to $75 from $108 for Chewy.

Regarding Peloton, UBS analysts wrote in a commentary that “while we still think Peloton has a long-term opportunity to disrupt traditional fitness business models, we downgrade it to sell, risk/reward skewed to the downside from current levels.” 

They added that “additionally, we update our model to reflect the Precor acquisition (expected to close in early calendar year 2021) and lower our out-year revenue estimates (FY'23-'25) to reflect more normalized growth rates after COVID-19.”

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As for Fiverr, “we see risk/reward on the stock skewed to the downside from current levels when measuring valuation against implied growth,” the analysts said. “While we see runway to grow/scale against key secular themes, we believe execution and supportive broader market dynamics will be more critical than ever in the face of tough comps as we progress through 2021 & premium valuation relative to peers.”

And on Chewy, “we make no changes to our forward operating estimates nor our multiples but we downgrade the stock from neutral to sell to reflect risk/reward from current levels,” the analysts wrote. “We continue to believe Chewy is well-positioned to capitalize on the long-term opportunity in pet e-commerce.”