Ronald Josey, an analyst from Citi, maintained the Hold rating on Peloton Interactive. The associated price target remains the same with $5.00.
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Ronald Josey has given his Hold rating due to a combination of factors, including a balanced view of Peloton’s growth and risk profile. While Peloton returned to modest revenue growth and lifted its full-year free cash flow outlook, profitability metrics such as EBITDA and gross margin came in slightly below expectations, signaling that the turnaround is still in progress rather than complete.
He also notes that connected fitness subscriber trends are stabilizing, with churn improving and overall subscription revenue slightly outperforming forecasts, yet the total subscriber base is still shrinking year over year. In addition, management’s capital allocation plans, including potential term-loan renegotiation and optionality for buybacks or M&A, add strategic upside but also introduce execution risk, which, combined with an expected share price downside versus his $5 price target, supports maintaining a Neutral stance rather than upgrading the stock.