Telsey Reiterates Market Perform Rating on Peloton Interactive (PTON)
Telsey analyst Dana Telsey reiterated a Market Perform rating and $11.00 price target on Peloton Interactive (NASDAQ: PTON).
The analyst comments "TAG View: Peloton beat its 2QF25 guidance significantly across the board. The biggest highlight was the much better-than-anticipated adjusted EBITDA, leading the company to raise its FY25 adjusted EBITDA guidance by 23% and its FY25 FCF guidance by more than $75MM. Profitability was lifted substantially in 2QF25 by increased efficiency in marketing spend and improved unit economics in the hardware business. Sales remained down, but also came out above estimates, with better-than-expected holiday performance in premium items like the Tread and Tread+, as well as strength in the low-price refurbished Bike. We remain on the sidelines, as Peloton's revenues continue to be pressured by cautious consumer spending on big-ticket items. However, we were solidly pleased by new CEO Peter Stern on the earnings call, and were encouraged by his strategic focus on driving innovation with new products and experiences, expanding the presence of Peloton in different areas, and improving unit economics and the cost structure of the business for further profitability gains. Overall, we maintain our Market Perform rating and 12-month price target of $11, based on applying an unchanged EV/Sales multiple of ~1.7x to our new FY26 sales estimate of $2.50B, up from $2.48B."
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Shares of Peloton Interactive closed at $8.49 yesterday.