Peloton upgraded to Buy at Argus amid cost-cutting, home-health demand

As previously reported, Argus upgraded Peloton (PTON) to Buy from Hold with a $15 price target The firm sees the company as well positioned to benefit from demand for in-home health and fitness subscription services, while its ongoing cost cutting is likely to result in expenses in line with those of its competitors, the analyst tells investors in a research note. Argus also believes that Peloton’s new CEO Peter Stern can reduce debt, revive subscriber growth, and increase customer retention, and longer term, the company should benefit from increased interest in fitness products and operating leverage on higher sales.