Truist Financial analyst Youssef Squali maintains $Peloton Interactive (PTON.US)$ with a hold rating, and sets the target price at $10.
According to TipRanks data, the analyst has a success rate of 53.0% and a total average return of 10.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Peloton Interactive (PTON.US)$'s main analysts recently are as follows:
Peloton delivered fiscal Q1 results that surpassed expectations, with Connected Fitness subscriptions, revenue, and adjusted EBITDA all exceeding the upper range of guidance. Despite these positive outcomes, the unchanged fiscal 2025 revenue guidance implies ongoing challenges in expanding the subscriber base and an uncertain trajectory towards growth for the company.
The adjustment of expectations for Peloton comes after a fiscal Q1 that surpassed estimates with a notably higher EBITDA than anticipated. Further optimism is derived from the increased guidance for FY25, now expected to be between $240M and $290M, compared to the previous consensus. The belief that Peloton could surpass $300M in EBITDA this year is supported by projections that it could potentially reach over $400M in the coming years.
The company is on a path to quicker than expected profitability improvement, with potential for additional cost efficiencies in the short term. Nevertheless, the decline in the subscriber base presents uncertainties regarding the company's ability to achieve sustainable profitable growth.
Note:
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