Peloton guts out safety issue

Selling a treadmill that safety regulators say can injure pets and children might be considered bad for

business. Peloton sees it differently.

Over the weekend, the U.S. Consumer Product Safety Commission warned people with kids and pets to stop

using Peloton’s $4,300 treadmill.

They can get sucked under the machine, resulting in scrapes and broken bones, or worse.

One child has died.

Normally, companies called out this way issue voluntary

recalls. But Peloton, best known for its stationary bikes, insists its treadmill is safe and says it has no intention of recalling it. It has issued new safety warnings to its customers and reminded users to keep children and pets away from the treadmill. Wall Street doesn’t seem that concerned yet. This month, 86% of analysts say

Peloton is a “buy,” up from 85% last month, according to FactSet.

JP Morgan’s Doug Anmuth says the stock remains a “best idea.” Peloton’s safety warnings

are “satisfactory” and a resolution with U.S. regulators is likely, said CFRA Research analyst Camilla Yanushevsky, who also rates the company’s

shares a “buy.”