Peloton Interactive (PTON – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Simeon Siegel from BMO Capital maintained a Hold rating on the stock and has a $8.50 price target.
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Simeon Siegel has given his Hold rating due to a combination of factors influencing Peloton Interactive’s stock. The company has shown progress in profitability, with improvements in adjusted EBITDA and free cash flow guidance. This suggests potential for further EBITDA growth if the focus on profitability continues.
However, Siegel expresses concerns that the total addressable market may not reach management’s expectations, which poses future risks. Despite the positive adjustments, there is a belief that Peloton’s growth phase might be over, and the company should focus on its existing loyal customer base. Additionally, while the negative sentiment around the stock may have been excessive, it still justifies a cautious stance, leading to the Hold rating.
In another report released today, Bernstein also maintained a Hold rating on the stock with a $9.00 price target.
PTON’s price has also changed dramatically for the past six months – from $3.070 to $8.490, which is a 176.55% increase.