Analyst Nafeesa Gupta of Bank of America Securities reiterated a Buy rating on Peloton Interactive, with a price target of $11.00.
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Nafeesa Gupta has given her Buy rating due to a combination of factors including Peloton’s strategic product overhaul and integration of AI technology. The company has introduced new AI-powered personal coaching and expanded its wellness content, which is expected to enhance user experience and engagement. Additionally, Peloton has increased its hardware prices and subscription fees, which could potentially boost revenue and EBITDA growth despite a possible short-term churn increase.
Moreover, Peloton’s expansion of its distribution network through new partnerships and micro stores is anticipated to widen its market reach. The introduction of the ‘Peloton Pro’ line for commercial use in hotels and multi-family dwellings further diversifies its product offerings. Gupta believes that the focus on AI and personalization will improve user experiences and reduce long-term churn, supporting a positive growth outlook for the company.
According to TipRanks, Gupta is ranked #9325 out of 10012 analysts.
In another report released yesterday, Goldman Sachs also reiterated a Buy rating on the stock with a $11.50 price target.