Peloton upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded Peloton (PTON) to Buy from Hold with a price target of $6.60, down from $8.60. The firm believes the shares have been “unfairly punished” since the fiscal Q2 report, down over 30%. With over 90% of gross profit coming from the Peloton subscription, “industry-leading” churn for the subscription, and likely counter-cyclicality given both the convenience and relative affordability to many gyms, Peloton’s earnings growth should be more defensive, the analyst tells investors in a research note. As such, Deutsche expects the shares to outperform over the next 12 months.