Analyst Nathan Feather of Morgan Stanley maintained a Hold rating on Peloton Interactive, boosting the price target to $5.75.
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Nathan Feather has given his Hold rating due to a combination of factors impacting Peloton Interactive’s financial outlook. One of the primary considerations is the anticipated increase in subscription prices, which is expected to occur in fiscal year 2026. This price adjustment is projected to significantly enhance Peloton’s EBITDA by approximately $130 million annually, assuming a $5 per month increase starting in January 2026.
Despite this potential for increased revenue, there are concerns about subscriber churn and the company’s ability to maintain its market share in a competitive environment. The current market conditions and Peloton’s performance metrics suggest that while there is potential for growth, uncertainties remain. Consequently, Nathan Feather maintains a Hold rating, reflecting a cautious optimism about Peloton’s future financial performance.
Feather covers the Consumer Cyclical sector, focusing on stocks such as Chewy, eBay, and Revolve Group. According to TipRanks, Feather has an average return of 21.5% and a 67.65% success rate on recommended stocks.
In another report released on August 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.50 price target.