Peloton price target lowered to $4 from $5 at Telsey Advisory

Telsey Advisory analyst Dana Telsey lowered the firm’s price target on Peloton to $4 from $5 and keeps a Market Perform rating on the shares. The company’s upcoming Q3 results and updated FY24 guidance will shed light as to whether demand for its fitness equipment can turn positive in Q4, the analyst tells investors. However, with consumers returned to in-person activities, there are a lack of catalysts to drive demand for in-home fitness equipment, the firm adds. While Peloton has made changes to drive revenues and realign its cost structures, there is not enough evidence the business is on track to return to strong growth and profitability that would allow for it to repay its debt when its due in 2026/2027.