Peloton shares were under pressure on Wednesday after announcing a recall, but Wall Street firms Baird and Stifel said the sell-off was an overreaction.
The exercise equipment company recalled its Tread and Tread+ treadmills after dozens of injuries and one death were linked to the products. CEO John Foley also apologized for not being more cooperative with the U.S. Consumer Product Safety Commission. Peloton’s stock was down more than 14% on Wednesday afternoon.
However, some analysts said that the treadmill issues did not present a long-term problem for Peloton.
Baird analyst Jonathan Komp said in a note that concerns about the recall were “overblown” and added a fresh pick designation on the stock. The firm already had an overweight rating on Peloton.