Peloton Interactive( PTON ) - Get Reportis considering launching a cheaper treadmill as its next product, the connected fitness product company's chief financial officer said Thursday.
Shares of the New York company at last check were up 2.7% to $64.20[.
CFO Jill Woodworth said during a Barron's Investing in Tech call that the company's next product probably won't be a rowing machine or an exercise bike.
The priority, Woodworth said, would be to develop a product for the "running and boot camp category," which could be two to three times the size of the bike category.
The executive said the company has previously raised the prospect of a treadmill priced closer to that of its bike, Barron's reported. On the PTON website the bike is $2,245 while the current treadmill is nearly twice that, at $4,295.
A rowing machine could be introduced further down the road, Woodworth added, even though the category is significantly smaller than the "tread and boot camp" category.
Interest in Peloton has soared as the coronavirus pandemic has forced gyms and health clubs to close down in an effort to slow the spread of the potentially deadly disease.
The company's products, such as the Peloton Bike and the Peloton Tread, include touchscreens that stream live and on-demand classes.
On Monday, Peloton was removed from Wedbush’s Best Ideas List based on valuation, but the firm’s James Hardiman affirmed his outperform rating and $63 share-price target on the company.
Hardiman remains of the “belief that the company has considerable runway for outsize growth,” he wrote in a commentary cited by Barron’s.
Peloton represents more than just a fad, as some critics have charged, with many people staying at home around the country in fear of the coronavirus, Hardiman said. The company has a hefty order backlog
Many wealthy people will shy away from public gyms, even after cities ease their coronavirus restrictions, pushing them to Peloton, he said
Last week, Peloton and Roku announced that an app from the fitness company is now available on the streaming platform.