Nathan Feather, an analyst from Morgan Stanley, maintained the Hold rating on Peloton Interactive (PTON – Research Report). The associated price target remains the same with $4.00.
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Nathan Feather’s rating is based on a combination of factors that influence Peloton Interactive’s current and future performance. The company has shown strong profitability in recent quarters, consistently beating expectations on EBITDA, which suggests that Peloton is effectively managing its costs. However, there are concerns about its medium-term growth prospects, as indicated by a slowdown in subscriber growth and relative underperformance compared to its peers.
Despite the positive outlook on profitability, the growth trajectory remains uncertain. The company’s web traffic and branded search trends have been declining, which raises questions about its ability to sustain growth. Additionally, while the direct tariff impact is manageable, the overall market conditions and competitive pressures suggest a cautious approach. Therefore, Nathan Feather has opted for a Hold rating, reflecting a balanced view of Peloton’s potential risks and opportunities.
Feather covers the Consumer Cyclical sector, focusing on stocks such as eBay, Revolve Group, and Chewy. According to TipRanks, Feather has an average return of 25.6% and an 89.66% success rate on recommended stocks.
In another report released on May 5, Telsey Advisory also maintained a Hold rating on the stock with a $9.00 price target.