Morgan Stanley Downgrades Peloton Stock Amid Subscriber Decline
Senior Morgan Stanley analyst Nathan Feather has downgraded Peloton Interactive (PTON) to 'Underweight' and cut its price target to $4.50, suggesting a potential further decline of about 10%. The downgrade follows concerns over the company's declining user base and subscriber growth, which is expected to remain negative through fiscal 2029. Feather highlighted that Peloton’s revenue heavily depends on recurring subscription fees, making it vulnerable to ongoing churn. Additionally, he pointed out a broader shift in consumer behavior toward brick-and-mortar gyms over home fitness equipment, threatening the demand for Peloton's hardware products like indoor cycles and treadmills. Despite Morgan Stanley's bearish stance, other Wall Street analysts still maintain an overall 'Moderate Buy' consensus rating on PTON with a mean price target of $8.25, implying potential upside from current levels.
Topics: Morgan Stanley Peloton stock downgrade subscriber churn user base decline