Stifel analyst Scott Devitt downgraded Peloton Interactive to Hold from Buy with a price target of $14, down from $45, post the Q1 results. While acknowledging it is still early in the company’s transition, the analyst says visibility into the normalized growth rate of the business “has yet to emerge.” Guidance for Q2 calls for just 18,000 net sequential Connected Fitness subscriber additions, despite Peloton having lowered prices on its core hardware products in April, Devitt tells investors in a research note. The price reductions implemented early in Q4 will contribute to reductions in hardware gross margins, leading to an adjusted EBITDA outlook well below expectations and consensus, says the analyst. He expects it will take several quarters to determine a more normalized pace of connected fitness subscriber growth and materially lowered his estimates.