Peloton In For A Rough Ride With Increased Churn and Revenue Risks, Analyst Forecasts
Portfolio Pulse from Anusuya Lahiri
B of A Securities analyst Curtis Nagle downgraded Peloton Interactive Inc (NASDAQ:PTON) from Neutral to Underperform and cut the price target to $4.15 from $6.50. Nagle noted increased churn due to declining platform engagement and a subscriber base at risk as COVID cohorts reach the average subscriber lifetime. He also projected FY24 and FY25 revenues to be 6% and 14% below the Street's estimates respectively.
October 19, 2023 | 4:59 pm
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Peloton's stock has been downgraded due to increased churn and revenue risks. The price target has been cut to $4.15.
The downgrade by B of A Securities analyst Curtis Nagle is based on increased churn due to declining platform engagement and a subscriber base at risk. This negative outlook is likely to impact the stock price negatively in the short term.
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