Analysts rate Peloton Interactive Inc. (PTON:NSD) with a Buy rating and $17 PTON stock price target

BMO Financial lowered the PTON stock price target to $8.5.

Based on the Peloton Stock Forecast from 23 analysts, the average analyst PTON stock price target is USD 17.84 over the next 12 months. Peloton Interactive Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Peloton stock forecast is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, Peloton Interactive Inc’s stock price was USD 7.24Peloton Interactive Inc’s stock price has changed by -1.45% over the past week, -2.50% over the past month and -91.49% over the last year.

BMO Financial just cut the 12 month target on the stock to $8.50 from $9.5o, and maintained the Underperform rating on the stock.

 

About Peloton Interactive Inc. (PTON:NSD):

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, and Peloton Tread+ names. It also provides connected fitness subscriptions for various household users, and access to various live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. As of June 30, 2022, it had approximately 6.9 million members. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

 

What we like:

High market capitalization:

PTON stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior Revenue Growth:

PTON stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility:

The total returns for PTON stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

PTON stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

PTON stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock analysis and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

PTON stock has shown below median earnings growth in the previous 5 years compared to its sector.