BMO Capital analyst Simeon Siegel lowered the firm’s price target on Peloton to $7.50 from $8 and keeps a Market Perform rating on the shares. The company’s Q2 revenue beat estimates and churn was down in what was a “fine quarter”, but its path forward is “unclear”, the analyst tells investors in a research note. The firm maintains that Peloton’s total addressable market will prove materially lower than management expectations and sees risks ahead, noting that the company is better served by bear-hugging their brand loyalists and acknowledging that growth is likely in the rearview.
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