1231 ET - Peloton's churn rate has been better than expected lately, countering investors' fears that higher subscription prices would cause members to quit, UBS analysts say in a note. However, the stock has still been under pressure because the company lowered its revenue guidance for the fiscal year, with sales hurt by lower uptake of new hardware by existing members. "The issue is that product replacement for existing members was never central to the Peloton story," the analysts say. "What has been more central to the story -- and a source of doubt for investors -- is churn." The analysts say they expect churn to continue to move in the right direction and subscribers to stabilize, allowing Peloton to eventually return to growth. "We see compelling risk/reward," they say, maintaining their $11 price target. Peloton rises 4.7%, to $4.12. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

March 24, 2026 12:31 ET (16:31 GMT)

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