Key Takeaways
- Truist analysts on Monday upgraded Peloton Interactive’s stock to “buy” from “hold” as they noted signs that things are looking up for the company.
- They set a price target of $11 for Peloton, above the average Wall Street analysts’ target of about $10.20, according to Visible Alpha.
- Peloton’s stock price has lost much of its value since booming during the pandemic to hit nearly $170 a share.
Some analysts’ wheels are turning again about the outlook for Peloton Interactive (PTON).
Analysts with Truist on Monday upgraded the U.S.-based exercise equipment company’s stock to “buy” from “hold,” according to a research note from the bank.
Truist analysts said they believe Peloton’s stock “is finally nearing a point where the company’s improving fundamentals should support a gradual recovery of its equity.” The bank set its price target for Peloton at $11 a share, while the average target among 10 brokers who cover Peloton is about $10.20, according to Visible Alpha.
Truist said it downgraded Peloton three years ago to “hold” from “buy” after a boom for the company during the pandemic and a subsequent stock-price plunge of about 98% to $3.30 by April 2024 from its peak of above $167 a share in January of 2021.
New CEO Seeks To Deliver on Profitability Targets
But analysts believe the company may be pedaling toward recovery, as new CEO Peter Stern has set his sights on delivering on 2025 fiscal-year profitability targets, then, as Truist sees it, will focus on revenue growth starting the next year, something analysts say will be a “positive catalyst” for the stock.
“We met with the company recently and walked away encouraged,” the Truist note said.
Shares of Peloton are up more than 3% Monday afternoon at $6.49 and have more than doubled in the last 12 months. Peloton is expected to report its fiscal third-quarter earnings on May 8.
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