Analysts recently downgraded or trimmed their price target on Peloton Interactive Inc (NASDAQ:PTON).
- JMP Securities analyst Andrew Boone downgraded Peloton to Market Perform from Outperform without a price target.
- Peloton's website visits and page views declined year-over-year in December as per SimilarWeb.
- Boone moved his projections to be below consensus and guidance for FY22.
- Traffic data confirmed that Peloton demand was "significantly pulled forward during the pandemic, creating difficult comps for this fiscal year."
- Boone continues to believe that Peloton offers "best-in-class" hardware and digital content and has growth drivers in new products and international expansion.
- However, Boone is stepping to the sidelines with estimates below consensus as U.S. Bike sales slow.
- Baird analyst Jonathan Komp lowered the price target on Peloton to $70 from $90, implying 102.5% upside to December 29 closing price, and reiterated Outperform.
- Komp admits being wrong in mid-November to name the stock a "Fresh Pick," believing Peloton's capital raise removed one overhang.
- Komp at the time highlighted seasonal and holiday demand as an essential variable, and since then, "several indicators" have reduced his confidence in near-term estimates.
- As such, Komp reduced Peloton's connected fitness subscriber estimate by 3%, which he notes has positive near-term gross margin implications.
- While another guidance cut could further impact investor confidence, Peloton shares still offer an "attractive intermediate - to longer-term risk-reward."
- Price Target: PTON shares closed higher by 7.61% at $37.19 on Thursday.
