CNBC Pro

Peloton shares can rebound by more than 30%, Loop Capital says

Maggie Lu uses a Peloton Tread treadmill during CES 2018 at the Las Vegas Convention Center on January 11, 2018 in Las Vegas, Nevada.
Ethan Miller | Getty Images

Peloton's recent struggles are overblown, and investors should buy the dip, according to Loop Capital Markets.

The stock took a major step down in May after the company recalled its treadmill products, though the shares have since recovered from the sell-off. Shares have fallen for five straight trading sessions.

Analyst Daniel Adam initiated coverage of the stock on Monday with a buy rating, saying in a note to clients that the recall was weighing on the stock more than it should.

More In Street Calls

CNBC ProAtlantic Equities downgrades Nasdaq exchange, says gains will be harder to come by
CNBC ProKeyBanc raises price target on Apple, citing healthy iPhone demand
CNBC ProHere are Friday's biggest analyst calls: Apple, HP, SoFi, Bed Bath & Beyond, Meta, Disney & more