BofA Securities analysts downgraded Peloton Interactive (NASDAQ:PTON) from Neutral to Underperform, setting a price target of $4.15, down from $6.50. The analysts expressed concerns about the company’s revenue being at risk due to increased churn stemming from declining platform engagement and a subscriber base that faces potential challenges as COVID cohorts reach their average subscriber lifetime.
The analysts lowered estimates, with 2024-2025 revenue estimates trailing behind the Street by 6% to 14%, and EBITDA estimates significantly lower at -$103 million to -$74 million compared to the Street’s -$36 million to $80 million.
