Beachbody's Stock Price Prediction After IPO, Chance to Buy the Dip

Beachbody (BODY) stock made its market debut on June 28. It gained more than 6 percent on its first trading day but fell 12 percent on the second day. Will Beachbody stock go up and is it a good investment?

Beachbody went public through a SPAC merger with Forest Road Acquisition. It was a three-way combination. Forest Road also acquired Myx Fitness and merged it with Beachbody to take both businesses public at the same time as one unit.

Beachbody is based in California and provides digital fitness content. Meanwhile, Connecticut-based Myx Fitness sells stationary workout bikes. That makes the combined Beachbody a direct competitor to Peloton (PTON).

Beachbody’s pullback on the second day erased all of its first-day gains and more. Many investors wonder whether BODY stock will recover. The stock was rising in the premarket session on June 30, which is a sign that some investors are taking advantage of the pullback to buy the dip.

Wall Street's coverage of Beachbody is still minimal. Currently, BODY stock carries a 12-month target price of $12.75, which implies 14 percent upside potential to the current price. The highest Beachbody stock price prediction of $14.50 suggests a 30 percent upside.

Beachbody’s subscribers base is expanding and recently hit 3.2 million. Its subscriber retention rate is also great at about 96 percent. Subscription sales provide recurring revenue and make the business more predictable.

In the first quarter, Beachbody’s revenue, including Myx Fitness sales, jumped 43 percent to $243 million. In terms of digital content business, Beachbody aims to become the Netflix or Disney+ of fitness.

With Beachbody going public, investors now have more fitness stocks to choose from. Should BODY or PTON stock be in your portfolio? If your investment budget can accommodate it, holding both Beachbody and Peloton stocks in your portfolio would be beneficial considering the fitness industry's bright prospects.

If you must choose between Beachbody and Peloton, you need to know a few things to make an informed investment decision. At the current price, BODY stock is more than 10x cheaper than PTON stock, which costs $125.

If you’re looking for a bargain opportunity, Beachbody stock currently trades at a 35 percent discount to its all-time high. Meanwhile, Peloton stock trades at a 26 percent discount to its recent peak.

In terms of price prediction, the average BODY stock price target implies 14 percent upside potential. On the other hand, PTON price target suggests an upside potential of about 5 percent.