Peloton downgraded to Hold at Canaccord as turnaround continues to extend

Canaccord downgraded Peloton to Hold from Buy with a price target of $5, down from $8. The company reported “modest” fiscal Q1 results and guidance was “slightly disappointing,” says the analyst, who notes that the subscriber base is still shrinking along with revenue and says the duration of Peloton’s turnaround “continues to extend.” While recognizing the firm’s downgrade “is quite late,” the analyst prefers to revisit the stock when fundamentals are more firmly pointing towards growth.