Ronald Josey, an analyst from Citi, maintained the Hold rating on Peloton Interactive. The associated price target was lowered to $8.25.
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Ronald Josey has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding Peloton Interactive’s future performance. The company’s recent financial results showed improvements in revenue and profitability, with EBITDA surpassing expectations. However, Josey is cautious about the potential impact of increased subscription pricing on subscriber growth and churn rates. Despite positive engagement trends and favorable feedback on new products, there is concern over subscriber visibility and potential churn, which has led to a more conservative outlook.
While Peloton’s revenue and subscriber numbers exceeded expectations in the recent quarter, the guidance for the next quarter’s paid subscribers was slightly below projections. Additionally, although churn rates were better than anticipated, the company expects higher churn in the upcoming quarter due to the price increase. These mixed signals, combined with the need for greater clarity on subscriber trends, have led Josey to maintain a Neutral/High Risk rating and adjust the target price to $8.25.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $6.50 price target.
PTON’s price has also changed slightly for the past six months – from $6.290 to $6.880, which is a 9.38% increase.