TD Cowen adjusted its outlook on Peloton Interactive (NASDAQ:PTON), increasing the stock's price target to $4.00 from the previous $3.00, while retaining a Hold rating on the shares. The revision follows Peloton's financial results for the fourth fiscal quarter of 2024, in which the company surpassed both TD Cowen's and the consensus estimates for revenue and EBITDA.
Peloton's guidance for fiscal year 2025 presented a mixed picture, with revenue projections falling short of both TD Cowen's and consensus estimates by 9% and 10%, respectively. This downward adjustment is due to anticipated lower hardware sales.
However, the EBITDA outlook is significantly more optimistic than expected, as Peloton continues to restructure its cost base.
The management team at Peloton also provided updates on the progress of the search for a new CEO. This executive search is part of the company's broader strategic efforts to steer the company towards a more profitable and efficient future.
In response to these updates, TD Cowen has recalibrated its estimates and adjusted the discounted cash flow (DCF)-based price target to $4.
Despite the increased price target, the firm maintains a Hold rating on Peloton shares, indicating a cautious optimism about the company's financial trajectory following its latest restructuring measures.
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