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, January 11, 2018.
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.