4 Peloton Analysts Break Down Preliminary Q2 Results

After the release of Peloton Interactive Inc. PTON's preliminary second-quarter results Thursday with a CEO note on current initiatives, Peloton stock rebounded during the after hours session and continued the rally into Friday.

Let’s examine the updated perspectives and sentiments of four sell-side firms below:

Telsey Advisory Group Maintains Outperform Rating, Lowers Price Target From $70 To $30

Telsey said Peloton's “preliminary 2QF22 result is likely not as bad as feared” but the firm is negative on signs showing “further deceleration in the business in November and December,” as connected fitness subscriber growth fell short of estimates.

Needham Reiterates Buy Rating, Lowers Price Target From $105 To $50

Needham said that “valuation risk reward is attractive on seemingly washed out estimates” and highlighted progress on “right-sizing its cost structure,” which the firm said could help “subscription contribution margin to shine.”

KeyBanc Maintains Overweight Rating, Lowers Price Target From $110 To $60

KeyBanc warned of low visibility coupled with “soft near-term demand trends” but said it is positive on numerous company plans to implement “a more variable cost structure and will reduce operating expense.”

Raymond James Maintains Market Perform Rating

RayJay recent reports suggesting “a weakening in sales” and price increases, but notes “the hiring of McKinsey to address its cost structure”; estimates fair value through updated sum-of-parts analysis at $27 with “a bear case of $18 and bull case of $43”.

RayJay lowered its estimates and said “December results are better than feared,” but believes “the demand environment will continue to soften.”