Peloton Interactive (PTON) will be able to increase profit in the near term, but long-term concerns remain on the sustainability of its subscriber growth, Morgan Stanley said in a note emailed Friday.

The company's fiscal Q4 results beat consensus estimates, although its Connected Fitness subscriber count and related revenue were largely in line with expectations, implying that the gains were more because of the acquisition of Precor, the shift to more premium products, and cost discipline, according to the note.

Fiscal 2026 revenue guidance was above expectations and suggests revenue returns to positive growth in fiscal Q2 to Q4, supported by continued strong performance in Connected Fitness products and likely some added monetization efforts, the analysts said.

In the near term, Peloton has the ability to capture value from its existing subscriber base with a price increase and other avenues, the analysts said.

However, in the long term, the analysts said they continue to have concerns about the sustainable rate of subscriber and profit growth, citing fiscal Q1 subscriber guidance that indicated a decline in the mid-single digits percentage or in line with consensus expectations.

Morgan Stanley maintained the company's stock rating at equal-weight and revised the price target to $6.00 from $5.75.

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