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Major analysts are bullish with their first reports on the struggling Peloton IPO

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Peloton bike
Source: Peloton

Shares of fitness program company Peloton have dropped nearly 19% since its public debut last month, but Wall Street firms including J.P. Morgan, Barclays and UBS began covering the stock on Monday with bullish forecasts.

"We believe Peloton is well positioned to disrupt the fitness industry," J.P. Morgan wrote in a note to investors.

Raymond James thinks Peloton has "a clear path" to profitability, saying the company's profit outlook is "more than the market gives it credit for."

"An investment in Peloton is also an investment in the management team as, like Netflix, we expect many competitive challenges," Bank of America said.

While Peloton's stock initially rose more than 2% in premarket trading, it later fell 5.3% in trading to close at $22.28 a share. The analysts began coverage after a lock-up on analyst research of underwriting firms expired. Skeptics will say the firms are just trying to support the struggling stock brought public by Wall Street.

Here's what major analysts were saying about Peloton:

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