Needham analyst Bernie McTernan has maintained their neutral stance on PTON stock, giving a Hold rating on January 30.
Geoff Meacham has given his Hold rating due to a combination of factors impacting Peloton Interactive’s performance and outlook. The company faced a challenging holiday quarter, with profitability falling short of expectations as a result of lower than anticipated adjusted EBITDA and narrower margins despite revenues being slightly better than predicted. Furthermore, the guidance for the third fiscal quarter is not as optimistic as market consensus, showing limitations in both revenue and adjusted EBITDA projections.
Additionally, while Peloton anticipates a return to year-over-year revenue growth in the fourth quarter, there is a noticeable shift in their financial projections as the company no longer expects to achieve positive free cash flow in FY24. The overall market for connected fitness is proving to be tough, and the analyst’s attention revolves around Peloton’s ability to navigate back to growth amidst this challenging environment. This includes their strategies to balance investments in customer acquisition with the need to manage costs and improve profitability.
In another report released on January 30, TD Cowen also maintained a Hold rating on the stock with a $5.00 price target.
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Peloton Interactive (PTON) Company Description:
Founded in 2012, Peloton Interactive Inc. is a New York-based exercise equipment and media company, which provides interactive fitness products such as the Peloton Bike and the Peloton Tread, for live and on-demand classes.
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