Key Highlights:
- Truist Securities upgrades Peloton (PTON, Financial) to a "buy" on improved profitability outlook.
- Analysts project a 37.79% upside with an average price target of $9.09.
- Peloton aims for $2.43B-$2.48B in revenue and $200M in free cash flow by FY25.
Truist Securities' Upgrade: A Closer Look
Truist Securities has shifted its rating for Peloton Interactive Inc. (PTON) from "hold" to "buy," highlighting the company's enhanced profitability prospects stemming from strategic cost reductions. This upgrade comes amidst a 5% rally in Peloton's stock, as analysts express confidence in the new leadership's ability to meet financial targets for FY25, despite ongoing revenue hurdles.
Peloton is ambitiously targeting revenues between $2.43 billion and $2.48 billion, coupled with a projected free cash flow of at least $200 million by 2025. These financial goals underline the company's commitment to strengthening its market position and delivering value to shareholders.
Wall Street Analysts' Forecast for Peloton
According to price targets set by 17 analysts, the average target price for Peloton Interactive Inc (PTON, Financial) stands at $9.09. This comes with a high estimate of $20.00 and a low estimate of $4.00. The consensus indicates a potential upside of 37.79% from the current trading price of $6.60. For detailed estimate data, you can visit the Peloton Interactive Inc (PTON) Forecast page.
Brokerage Recommendations and GF Value Insights
The consensus recommendation from 22 brokerage firms places Peloton Interactive Inc (PTON, Financial) at a 2.6 rating, maintaining its "Hold" status. This rating uses a scale where 1 represents a Strong Buy and 5 indicates a Sell.
According to GuruFocus estimates, the estimated GF Value for Peloton Interactive Inc (PTON, Financial) in the coming year is $5.36. This suggests an 18.79% downside from the current price of $6.60. GF Value is a proprietary metric representing the fair value at which the stock should trade, calculated from historical stock multiples and anticipated business growth. For more insights, visit the Peloton Interactive Inc (PTON) Summary page.
