Peloton downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Lee Horowitz downgraded Peloton to Hold from Buy with a price target of $4, down from $13. The downgrade follows a transfer of analyst coverage. While the firm remains bullish on Peloton having a large total addressable market ahead of it that can support accelerative growth, it says the confidence in underwriting the success of its growth drivers in the medium term is challenging. Thus, the analyst believes the stock’s valuation on a growth-adjusted multiple basis should be closer to peers. Deutsche Bank cites a lack a clarity in the company’s growth outlook for the downgrade.