BofA raised the firm’s price target on Peloton (PTON) to $11 from $9.50 and keeps a Buy rating on the shares after the company launched a complete product portfolio overhaul, AI-powered personal coaching and expanded wellness content and also announced higher hardware MSRPs and increased subscription prices. While the firm thinks the price increases could increase the near-term churn, it argues that this major product overhaul with integrated AI software is “an important step” towards a better user experience.
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