Peloton Reaffirmed at Hold as Revenue Returns to Growth but Subscriber Durability Concerns Persist

Needham analyst Bernie McTernan has reiterated their neutral stance on PTON stock, giving a Hold rating yesterday.

Bernie McTernan has given his Hold rating due to a combination of factors, primarily that Peloton’s latest quarter did not meaningfully alter his longer-term outlook. The company’s revenue has shifted back to a growth trajectory and subscriber metrics, along with management’s guidance, generally aligned with his prior expectations, so his forecasts for fiscal 2026 and 2027 remain largely intact.

At the same time, he remains cautious about Peloton’s ability to sustainably expand its subscriber base, and he still models a reduction in subscribers in 2027, albeit a smaller decline than previously anticipated. In his view, the recently announced content licensing arrangement with Spotify offers an appealing avenue for high-margin revenue, but this upside is not yet sufficient to offset lingering concerns about the durability of the subscription business, justifying a neutral, or Hold, stance on the shares.

According to TipRanks, McTernan is a 3-star analyst with an average return of 1.9% and a 43.74% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, eBay, and PENN Entertainment.

In another report released yesterday, Telsey Advisory also maintained a Hold rating on the stock with a $6.00 price target.