Peloton stock hits record high after Precor deal

Peloton shares rose to a record Tuesday after the company announced plans to buy exercise equipment manufacturer Precor for $420 million.

In early trading Tuesday, the stock was at an intraday record of $160.56, up 11.2% from Monday’s close of $144.39.

Telsey Advisory Group analyst Dana Telsey said she expects the deal could increase Peloton’s annual sales by $480 million to $500 million, assuming Peloton retains Precor’s revenue. The deal is expected to close early next year. Once finalized, Precor will operate as a business unit within Peloton and continue to make its own branded products, the companies said.

The deal should allow Peloton to accelerate…