Bank of America Securities analyst Nafeesa Gupta has reiterated their bullish stance on PTON stock, giving a Buy rating on October 21.
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Nafeesa Gupta has given her Buy rating due to a combination of factors including Peloton’s strong financial performance and strategic initiatives. The company reported a revenue for the first fiscal quarter of 2026 that exceeded expectations, driven by robust hardware sales and a shift towards higher-priced products. Despite a minor setback in gross margin due to a recall-related charge, Peloton’s EBITDA margin significantly outperformed market estimates, aided by marketing cost savings.
Additionally, Peloton’s management has raised its full-year EBITDA guidance, reflecting confidence in gross margin leverage and cost-saving measures. The company’s strategic focus on balancing profitability with product-led growth, along with its expansion into the wellness category and new retail partnerships, are seen as positive long-term growth drivers. These factors, coupled with the potential for increased product visibility through new microstores, underpin the Buy rating, despite some near-term risks associated with subscription churn due to recent price changes.
In another report released on October 21, Canaccord Genuity also maintained a Buy rating on the stock with a $10.00 price target.
Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PTON in relation to earlier this year.