Peloton Interactive (PTON) PT Lowered to $8 at BMO Capital

BMO Capital analyst Simeon Siegel lowered the price target on Peloton Interactive (NASDAQ: PTON) to $8.00 (from $9.50) while maintaining a Market Perform rating.

The analyst commented, "4Q was yet another disappointing quarter. As we’ve highlighted for some time, we fear growing churn, slipping engagement, and meaningfully lower-than-hoped-for TAM; 4Q's results continue to paint that picture. On the other hand, although these fears were contrarian a couple of years ago, they're now consensus, and we wonder if the narrative is again driving PTON shares more so than fundamentals—leading us to wonder if the sell-off is overdone. Absent solvency-fears, if PTON bear-hugs brand-loyalists, we see a $5 downside price for a smaller, healthier business. Target price to $8."

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