Peloton downgraded to Neutral from Outperform at Baird

Baird analyst Jonathan Komp downgraded Peloton Interactive to Neutral from Outperform with a price target of $12, down from $14. The analyst is taking advantage of the year-to-date strength in active lifestyle stocks to step to the sideline on several names. Investors are "growing more optimistic in a soft landing and strong margin-led" fiscal 2023 earnings recovery, Baird tells investors in a research note. However, the analyst still fears potential future softening of consumer spending and sees a more balanced near-term risk/reward for several "lower-conviction ideas." Baird believes the current environment, including signs of accelerated return to gyms, could cause Peloton to guide its March quarter below consensus and lengthen the time needed to restore "healthy profitability."