Peloton Interactive A

Peloton shares dropped sharply in premarket trading after Morgan Stanley cut its rating to "Underweight" and reduced its price target, citing a steep decline in gross new customer additions. At the same time, UBS trimmed its price target and cut its EBITDA forecast for 2027 due to higher subscriber churn. Ongoing insider sales intensified the negative sentiment, while the decline was largely company-specific. » More on de.investing.com

Morgan Stanley downgraded Peloton from "Equal Weight" to "Underweight" and cut the price target from $5.00 to $4.50. Analyst Nathan Feather reduced his revenue and EBITDA forecasts for 2027/2028, citing structural headwinds in the fitness market—particularly a shift toward strength training and studios—that are severely constraining new customer acquisition. Gross new adds are roughly 78% below the peak, and a 9% decline in subscriber growth for Connected Fitness is expected in 2026. Feather says the valuation is not a sufficient catalyst and expects only limited impact from a cheaper treadmill before Christmas; new product categories are not expected until around the end of 2027. » More on de.investing.com

Peloton reported its first full-year GAAP profit of $63.2 million for fiscal 2026, yet shares fell after results as revenue fell 1.8% to $2.4 billion and connected-fitness subscribers declined 9% year over year to 2.5 million. Management cut costs and reduced run-rate expenses by $100 million, but guidance for fiscal 2027 implies a mid-point revenue decline and analysts forecast mixed EPS trends. With the stock off about 95% from its peak and trading at roughly 1x sales, a sustained return to strong user and revenue growth is required for shares to double over the next five years. » More on finance.yahoo.com