Peloton price target raised to $20 from $14 at Needham

Needham analyst Bernie McTernan raised the firm’s price target on Peloton to $20 from $14 and keeps a Buy rating on the shares after its Q2 results. The highlights for the quarter were the company’s better than expected revenue and the progression on fixing product gross margins, the analyst tells investors in a research note. The firm adds that while the falling product margins and rising fixed costs have overshadowed the attractive economics of a Peloton subscription, this dynamic is fading.