BUZZ-UBS upgrades Peloton to 'buy' rating, shares rise

Reuters
2025/07/30
BUZZ-UBS upgrades Peloton to 'buy' rating, shares rise

** Shares of fitness company Peloton Interactive PTON.O gain 13.5% to $7.02

** UBS upgrades stock to "buy" from "neutral", raises price target to $11 from $7.5

** Brokerage believes PTON's FY'26 EBITDA guide could come in above expectations, despite an uptick in marketing spend, driven by revenue growth supported by price increases in subscription business and measured churn increase, as well as further opex optimization beyond current cost-cutting plans

** UBS estimates 11%-12% pricing increase in connected fitness subscription could drive roughly $90 million to $100 million of annualized revenue uplift, net of impact from higher churn

** Seeing better data trends for Peloton in terms of traffic and active users - UBS

** 9 of 22 brokerages rate the stock "buy" or higher, 12 "hold", and 1 "sell"; their median PT is $8.13 - data compiled by LSEG

** Including session's move, stock down 19.3% YTD

(Reporting by Sukriti Gupta in Bengaluru)

((Sukriti.Gupta@thomsonreuters.com;))

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