Peloton Price Targets Cut to $7.50 and $6 After Q2 Shortfall
BofA Securities cut its Peloton price target from $9 to $7.50 after Q2 revenue of $657 million missed estimates by 3%, but kept its Buy rating. Telsey Advisory trimmed its target from $8 to $6, acknowledging improved profitability yet forecasting no near-term inflection in hardware sales or membership growth.
1. Q2 Revenue Miss Prompts BofA Target Cut
Peloton reported fiscal second-quarter revenue of $657 million, 3% below the $677 million consensus, driven by lower-than-expected Connected Fitness Product sales. In response, BofA Securities lowered its price target from $9 to $7.50 while maintaining a Buy rating, citing the revenue shortfall.
2. Telsey Highlights Profit Improvement, Growth Uncertainty
Telsey Advisory Group reduced its price target from $8 to $6 and kept a Market Perform rating, noting Peloton’s stronger balance sheet and improved profitability. However, the firm said it has yet to see a near-term inflection in hardware sales or member growth and expects the stock to trade in a range.