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Reopening Stocks Offer Investors a Mixed Bag on What's Next

Reopening stocks Peloton, Pfizer and Airbnb are moving in different directions on Friday.
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Reopening stocks were performing with varying results Friday, as the world looks to climb out of the Covid-19 abyss.

Peloton Interactive  (PTON) - Get Peloton Interactive, Inc. Class A Report, a winner during the pandemic, took an absolute drubbing on Friday, tumbling more than 30% at last check, after the connected fitness equipment maker slashed its 2022 sales forecast amid a slump in post-Covid-19 demand for its home fitness equipment.

"Demand is coming in lower on all fronts leading us to wonder when we might see a return on all the capital they have deployed," wrote Credit Suisse analyst Kaumil Gajrawala, who has an outperform rating and cut his price target to $112 from $148.

"Long term, the connected fitness opportunity could still be intact but the path to get there appears more difficult."

BMO Capital Markets analyst Simeon Siegel reiterated his underperform rating and maintained his $45 target. He said the results "suggest PTON's post-pandemic surge has dissipated, pressuring its ability to forecast, ironic as most consumer companies are now cheering visibility..."

Meanwhile Pfizer  (PFE) - Get Pfizer Inc. Report was heading into the green, up 7.8% recently, after the drugmaker said its developing Covid antiviral treatment cuts the risk of hospitalization and death by 89%. That topped data published by rival Merck  (MRK) - Get Merck & Co., Inc. Report.

Pfizer said it will give the data to the U.S. Food and Drug Administration as part of its emergency-use authorization application, which it filed earlier this month, following trials involving around 1,200 patients.

Cowen analyst Steve Scala said Pfizer's Paxlovid "looks superior" and to "have the edge" over Merck's molnupiravir when comparing efficacy and theoretical safety in similar populations and in cross-trial comparison of the two oral Covid antiviral pills, according to the Fly.

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The analyst said both companies have "viable agents" and noted that both are manufacturing at risk and prepared to supply millions of courses. He has an outperform rating and $56 price target on Pfizer shares.

Airbnb  (ABNB) - Get Airbnb, Inc. Class A Report was also surging, up nearly 12%, as the online home-share company posted its best quarter ever.

"Something bigger than a travel rebound is happening." Chief Executive Brian Chesky said on the earnings call. 

"The world is undergoing a revolution of how we live and work. The pandemic has suddenly untethered tens of millions of people from the need to go into an office."

JMP analyst Andrew Boone was certainly impressed, as he reiterated his outperform rating and boosted his price target to $205 from $190.

"With new features like 'I'm Flexible' helping consumers to discover new locations and properties while better utilizing listing supply (and more features to come next week), we view Airbnb as the most innovative company within travel," he said.

Canaccord Genuity analyst Michael Graham, who has a buy rating and a $220 price target on Airbnb, said the company set new quarterly records "thanks to the ongoing rebound in travel activity amid normalizing consumer behavior."

"Operational execution and reopening tailwinds have fueled strong performance over recent quarters," he said. 

"[And] we see a long runway for growth ahead as the shift away from traditional hotels and towards unique accommodations that can be found on Airbnb continues."