Why Peloton Shares Are Falling Today

Peloton Interactive Inc PTON is trading lower Friday after Credit Suisse downgraded the stock and cut its price target by more than 50%.

Credit Suisse analyst Kaumil Gajrawala downgraded Peloton from an Outperform rating to a Neutral rating and lowered the price target from $112 to $50.

Gajrawala thinks Peloton faces "demand headwinds" including higher mobility, a shift in consumer spending and the return of in-person fitness.

The Credit Suisse analyst said these headwinds increase the likelihood of "no-to-low growth" for the company in 2022.

See Also: Peloton Interactive Whale Trades Spotted

Peloton operates an interactive fitness platform. The company operates its business in two reportable segments: connected fitness products and subscriptions. 

PTON Price Action: Peloton has traded as high as $171.09 over a 52-week period. It's making new 52-week lows during Friday's trading session.

The stock was down 5.80% at $38.34 at time of publication.

Photo: courtesy of Peloton.