Peloton Interactive Receives a Downgrade by BofA Following Weak Q4 Results
<p>BofA Securities analysts revised their rating on <a href='https://financialmodelingprep.com/financial-summary/PTON'>Peloton Interactive (NASDAQ:PTON)</a> from Buy to Neutral and set a new price target of $6.50, down from the previous target of $13.00. This was followed by the company’s reported Q4 EPS miss and weaker-than-expected guidance.</p>
<p>The analysts explain the downgrade by pointing out the limited visibility on growth initiatives. Despite recognizing the value in the company's subscriber base, with a potential gross profit per subscriber of $1,350 and an overall value of around $4 billion, there are concerns about the certainty of future subscriber growth drivers. The analysts anticipate that elements such as app users, Fitness-as-a-Service (FaaS) expansion, partnerships, and international marketing could contribute to gross additions, but a rise in churn rates might hinder net subscriber growth.</p>

NASDAQ:PTON