Peloton Interactive (PTON – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Ronald Josey from Citi remains neutral on the stock and has a $10.00 price target.
Ronald Josey has given his Buy rating due to a combination of factors related to Peloton Interactive’s recent performance and future outlook. The primary reasons include the improvement in subscriber growth and engagement metrics, which surpassed expectations. Peloton achieved a modest year-over-year growth in connected fitness (CF) subscribers, exceeding consensus estimates, alongside a decline in monthly churn rates and an increase in average monthly watch time per paid subscriber. These signs of strengthening customer loyalty and engagement were key considerations in the positive rating.
Furthermore, Peloton’s financials also contributed to the Buy rating. Despite a year-over-year decline in revenue, the figures were slightly above consensus estimates. More significantly, the free cash flow (FCF) loss was substantially better than projected, indicating a healthier cash position than anticipated. The company’s guidance, predicting FCF positivity by the fourth fiscal quarter of 2024, signals a turning point in Peloton’s financial trajectory. These improvements in key financial metrics, along with strategic partnerships and new distribution channels, underpin Josey’s optimistic view on Peloton’s stock potential.
According to TipRanks, Josey is a top 100 analyst with an average return of 23.1% and a 58.12% success rate. Josey covers the Communication Services sector, focusing on stocks such as Meta Platforms, Nextdoor Holdings, and Alphabet Class A.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $7.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on PTON:
- Peloton Interactive Earnings Report: Is it a Beat?
- Peloton (NASDAQ:PTON) Reports Q2 Loss; Eyes Recovery Through Growth Initiatives
- Peloton Interactive, Inc. Reports Second Quarter Fiscal 2024 Financial Results
- Options Volatility and Implied Earnings Moves Today, February 01, 2024
- Trends Turn against Lululemon (NASDAQ:LULU), Shares Slump
