Stifel analyst Scott Devitt upgraded Peloton Interactive to Buy from Hold with a price target of $40, down from $56. CEO John Foley last night denied claims that the company would halt production, while acknowledging that it is taking action to improve costs and right size production, Devitt tells investors in a research note. The analyst believes the stock has “over corrected” relative to Peloton’s underlying business conditions. Yesterday’s closing price is below pre-pandemic levels despite the company having a significantly larger subscriber base and subscriber additions “that are meaningfully outpacing prior levels off of a much larger base,” Devitt contends.
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