Peloton price target lowered to $8.50 from $10 at Citi

Citi lowered the firm’s price target on Peloton (PTON) to $8.50 from $10 and keeps a Neutral rating on the shares. The firm updated the company’s model post the Q1 report. With churn rates improving “materially,” adoption of newer modalities like Strength ramping, and expanding EBITDA and free cash flow margins, Citi is encouraged with the progress at Peloton. The firm is watching for progress across Peloton’s growth initiatives, saying it remains early. It believes the stock’s risk/reward remains balanced at current levels.