Peloton price target lowered to $3 from $4.50 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Peloton to $3 from $4.50 and keeps an Equal Weight rating on the shares. Weaker second half free cash flow expectations and “a disappointing holiday quarter” leave the firm “incrementally more cautious” on the stock, says the analyst, who now does not forecast positive free cash flow until FY28. In a bear case, the firm sees “potential liquidity concerns” and it questions whether a new strategy is needed to turn the business around, the analyst added.