Truist Securities Upgrades Peloton Interactive (PTON) to Buy, 'Path to Growth/Sustained Profitability gets Clearer'

Truist Securities analyst Youssef Squali upgraded Peloton Interactive (NASDAQ: PTON) from Hold to Buy with a price target of $11.00.

The analyst comments "Three years+ after we downgraded PTON to Hold from Buy, we believe the stock is finally nearing a point where the company's improving fundamentals should support a gradual recovery of its equity. With the BS cleaned up and Opex materially reduced to ensure sustained FCF profitability, we believe the new leadership is refocusing on revenue growth (in FY26, by our est.). With subscriptions accounting for ~2/3s of revenue, improving profitability & margins and a washed-out valuation at 1.4x & 10.3x sales and AEBITDA, we believe PTON is mostly de-risked. NT for F3Q25 results (due out 5/8), we believe revenue has tracked slightly above consensus (based on our card data)."

For an analyst ratings summary and ratings history on Peloton Interactive click here. For more ratings news on Peloton Interactive click here.

Shares of Peloton Interactive closed at $6.29 yesterday.

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