Morgan Stanley Lacks Conviction In Peloton's Medium-Term Outlook - Here's Why - Peloton Interactive (NASDAQ:PTON)

Morgan Stanley analyst Lauren Schenk reiterated an Equal Weight on the shares of Peloton Interactive Inc PTON with a price target of $10.00.
The analyst said the company reported weaker than expected Q4 earnings.
Related: Peloton's Q4 Highlights: 28% Decline In Revenue, Focus On Restructuring, Inventory Reduction & More
Schenk noted that the biggest negative, however, is the reduced cash flow outlook for the full year despite a multitude of restructuring, supply chain and operational changes, store closures, and more.
She says though there is hope for the business to do well, there is more and more uncertainty on both top and bottom lines, with the changes taking longer than anticipated.
The analyst awaits more detail about new CEO Barry McCarthy's go-forward strategy, including equipment pricing changes, subscription pricing, and the evolution of the content platform.
Price Action: PTON shares are trading lower by 6.86% at $10.25 on the last check Friday.