Peloton Interactive (PTON) is seeing fewer customers cancel their subscriptions after last year's price increase, helping steady its 2.5 million connected-fitness base, UBS Securities said Tuesday in a report.

UBS said cancellations, a long-running concern for investors, have been lower than expected and should remain manageable, with Peloton adding an estimated 70,000 to 90,000 more subscribers than it loses over time.

UBS forecasts earnings before interest, taxes, depreciation, and amortization of $491 million in fiscal 2026 and $533 million for 2027 and said refinancing may lower Peloton's borrowing costs by about 3 percentage points, improving cash flow.

Long-term demand for connected fitness should benefit from rising health spending and wider use of GLP-1 weight-loss drugs, which may encourage more cardio and strength training, the report said.

UBS maintained its buy rating on Peloton's stock with a price target of $11.

Price: 4.16, Change: +0.23, Percent Change: +5.73