3 Peloton Interactive Analysts Give Key Takeaways On 'Better-Than-Expected' Q2 Print

Peloton Interactive Inc’s PTON earnings have disappointed over the past several quarters.

Analyst Aneesha Sherman maintained an Outperform rating, while raising the price target from $13 to $20.
“Peloton has done the work on fixing the business, results are showing through, and the progress continues,” Sherman said in a note. Better-than-expected hardware demand and net subscriber additions drove the 11% sales beat and “FCF positive ex-one offs,” she added.
“Mgmt are optimistic about hitting positive sales growth and positive adj. EBITDA in FY24,” the analyst further wrote.

Analyst Lauren Schenk reiterated an Equal-Weight rating and price target of $4.50.
“Higher promotions and new distribution channels drove better than expected F2Q revenue and net adds, but at lower margins,” Schenk said.
“F3Q revenue guidance appears conservative, but over the medium-term, risk/reward appears skewed to the downside,” he added.

Analyst Andrew Boone downgraded the rating from Outperform to Market.
“With QTD sub net additions already at levels implied by 3Q23 guidance, Peloton expects gross additions to slow in February and March with churn offsetting these new additions,” Boone wrote in a note.
He added that Peloton still offers “a best-in-class Connected Fitness experience that can take share of fitness budgets and remain well ahead of the Street on FY2024 EBITDA,” while supporting “even higher margins.”

PTON Price Action: Shares of Peloton Interactive had declined by 1.59% to $16.36 in premarket trading on Thursday.

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