Analyst Aneesha Sherman of Bernstein maintained a Hold rating on Peloton Interactive, with a price target of $7.50.
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Aneesha Sherman has given her Hold rating due to a combination of factors related to Peloton Interactive’s current financial and strategic position. The company has shown a strong balance sheet with a focus on achieving growth and profitability within the fiscal year. However, while there are signs of improvement, the growth initiatives and marketing efforts are expected to take time to significantly impact awareness and customer acquisition.
Despite stable churn rates and cost-cutting measures that are expected to improve margins, there are concerns about the non-linear progression of revenue growth, particularly with risks associated with FY27. The surplus cash and reduced net leverage ratio are positive indicators, yet the gradual process of increasing interest in new offerings presents a challenge. Overall, while Peloton’s financial health and potential for margin improvement provide some support, the uncertainties surrounding revenue growth and customer acquisition warrant a cautious Hold rating.
In another report released on November 7, Robert W. Baird also maintained a Hold rating on the stock with a $8.50 price target.
Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PTON in relation to earlier this year.