Truist analyst Youssef Squali raised the firm’s price target on Peloton to $15 from $10 and keeps a Hold rating on the shares. The company’s fiscal Q2 results and Q3 guidance show that management is making "real progress" on fixing Peloton by reaccelerating growth in connected fitness subscribers, working down inventory and stabilizing cash flow, the analyst tells investors in a research note. The firm is "warming up to the story again" with Peloton expected to reach free cash flow profitability by June and be repositioned for profitable growth in fiscal 2024. However, "much work remains to prove" that the company’s various new initiatives will drive significant growth and profitability over time, writes the analyst.
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