Key Takeaways
- Peloton stock jumped after Canccord Genuity upgraded the company to “buy” from “hold.”
- The stationary bike company is at a “turning point in its journey” and the “clear leader in the connected fitness industry,”
- Last month, the company reported quarterly results that beat analysts’ expectations.
Peloton (PTON) shares popped Friday after analysts at Canaccord Genuity upgraded the company’s stock to “buy” from “hold.”
The company is the “clear leader in the connected fitness industry,” the analysts said in a note Thursday, with a “loyal member base” that stands 6 million strong. Canaccord Genuity maintained its $10 price target for the stock, a roughly 50% premium after Peloton shares rose nearly 10% intraday to $6.64. By comparison, the analyst consensus price target is $10.59, according to Visible Alpha.
The upgrade comes after Peloton posted quarterly results that beat analysts’ expectations last month, even as revenue declined year-over-year. At the time, the stationary bike maker said it has a “steep hill to climb to reach sustained, profitable growth.”
Peloton hasn’t reported an unadjusted quarterly profit since 2021, according to Visible Alpha. However, the company “is at the turning point in its journey where there is meaningful upside potential from current levels,” Canaccord analysts said.
Shares of Peloton are up more than 9% Friday. The stock is up more than 50% over the past 12 months but has lost roughly a quarter of its value so far in 2025 amid wider market struggles.
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