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Key Takeaways
- Truist analysts on Monday upgraded Peloton Interactive's stock to "buy" from "hold" as they noted signs that things are looking up for the company.
- They set a price target of $11 for Peloton, above the average Wall Street analysts' target of about $10.20, according to Visible Alpha.
- Peloton's stock price has lost much of its value since booming during the pandemic to hit nearly $170 a share.
Analysts are once again reassessing the prospects of Peloton Interactive PTON.
According to a research report from the bank, analysts at Truist upgraded the stock of the U.S. exercise equipment company to “buy” on Monday from “hold”.
Truist analysts stated that they believe Peloton’s stock “is finally approaching a point where its improving fundamentals will support a gradual recover of its equity.” Visible Alpha reported that the bank’s price target for Peloton shares is $11, while the average target set by 10 brokers who cover Peloton shares is $10.20.
Truist said they downgraded Peloton from “buy to “hold three years ago after the company experienced a boom during the pandemic. They also saw the stock price plummet by 98% from $167 to $3.30 in January 2021.
New CEO Seeks to Deliver on Profitability Objectives
Analysts believe the company could be on its way to recovery. New CEO Peter Stern has set a goal of achieving fiscal-year profitability by 2025. Truist says that Stern will then begin focusing on revenue growth the following year. Truist calls this a “positive catalyst”.
Truist’s note stated, “We recently met with the company and left feeling encouraged.”
Peloton’s shares, which closed at $6.49 on Monday afternoon, are up more then 3% and have doubled over the last year. Peloton’s fiscal third-quarter results are expected to be released on May 8.
