Peloton to Remain the Clear Leader in Connected Fitness, Says Morgan Stanley

By Sam Boughedda

Investing.com — On Monday, Morgan Stanley analyst Lauren Schenk initiated protection of Peloton Interactive, Inc. (NASDAQ:) with an ‘equal weight’ score and a $32 worth goal.

In a be aware to purchasers, the analyst stated they count on Peloton “to stay the clear chief in related health, with its industry-leading content material and low churn as the important thing shareholder worth.” 

Nonetheless, Schenk defined that they lack visibility and conviction within the medium-term outlook as they await extra element round Peloton’s new CEO, Barry McCarthy’s technique, together with gear pricing modifications, subscription pricing, and the evolution of the content material platform. 

“We might flip extra optimistic if we acquire extra visibility/conviction across the path of the important thing inputs across the three 12 months outlook,” added Schenk. “Whereas we count on PTON to stay the clear dominant participant within the bike market long-term, we do not count on any new modality to drive as a lot unit gross sales or income because the bike.”

Elsewhere, JMP Securities analyst Andrew Boone stated they see “sturdy” preliminary demand for Peloton’s all-in subscription pricing.

Peloton fell over 1% within the early a part of Monday’s session.