UPDATE: Morgan Stanley Starts Peloton Interactive (PTON) at Equalweight
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Morgan Stanley analyst Lauren Schenk initiates coverage on Peloton Interactive (NASDAQ: PTON) with a Equalweight rating and a price target of $32.00.
The analyst comments "We lean bullish as we believe a new regime will optimize the revenue/profit trade-off long-term: We expect PTON to remain the clear leader in connected fitness, with its industry-leading content and low churn as the key shareholder value unlock long-term. However, we lack visibility and thus conviction in the medium-term outlook as we await more detail around new CEO Barry McCarthy's go forward strategy, including equipment pricing changes, subscription pricing, and the evolution of the content platform. We see a wide range of potential outcomes in both our base case range and bull/bear spread, leading to low medium-term conviction given so many unknowns. We could turn more positive if we gain more visibility/conviction around the direction of the key inputs around the three year outlook."
Shares of Peloton Interactive closed at $21.14 yesterday.
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