Peloton Interactive: Hold Rating Amid Mixed Financial Outlook and Uncertain Growth Sustainability

Aneesha Sherman, an analyst from Bernstein, reiterated the Hold rating on Peloton Interactive. The associated price target is $7.50.

Aneesha Sherman’s rating is based on Peloton Interactive’s recent performance and future outlook. The company has shown a positive earnings per share for the first time since December 2020, with a 5% revenue beat and improved margins. However, despite these positive signs, the sustainability of this growth remains uncertain due to ongoing challenges in subscriber growth and demand softness.
While Peloton is expected to see revenue growth driven by strategic price increases and diversification of revenue streams, these benefits are anticipated to level off next year. Subscriber growth is projected to remain negative for the near future, and while there is an improving trend in margins and cash flow, the long-term growth trajectory is still unclear. Therefore, the Hold rating reflects a cautious stance given the mixed outlook for Peloton’s financial health.