Zhitong Financial APP learned that JPMorgan Chase & Co analyst Doug Anmuth maintained the stock's "overweight" rating and gave it a target price of $138. The analyst said a $400 reduction in the first-generation Bike, a product owned by Peloton (PTON.US), and a sharp increase in marketing fees, commodities and freight costs, could have contributed to Peloton's poor performance in fiscal year 2022, with negative earnings before interest, tax, depreciation and amortisation.

However, the analyst still favours the latter when weighing short-term earnings against future growth. The analyst said he understood investors' concerns about the demand side of the product Bike and whether the price cuts for the company's products were offensive or defensive. But he attributed the decline in the new revenue guidance to seasonal factors (the company expects total Q1 revenue of $800m in fiscal 22, compared with market expectations of $1 billion).

Anmuth said Peloton now expects Bike sales to grow year-on-year, while most people had expected Bike sales to decline.

The analyst remains bullish on Peloton and recommends buying shares in the company that were sold at a low price due to the announcement of the results.

As of press time, the stock was down 5.60% at $107.7 before trading.