Peloton Interactive (PTON) PT Raised to $8.50 at BMO Capital

BMO Capital analyst Simeon Siegel raised the price target on Peloton Interactive (NASDAQ: PTON) to $8.50 (from $6.50) while maintaining a Market Perform rating.

The analyst comments "Reiterating revenues but raising EBITDA, PTON’s profitability pivot is driving undeniable improvement. We've been suggesting PTON emphasize profitability over growth (see How We Would Generate ~$500mn+ EBITDA) and PTON's results represented another proof-point. We continue to believe PTON’s material growth is behind and should bearhug brand loyalists, enjoying GM-heavy Subscription cash, but urgency matters given shrinking Subscription revenues/growing churn. We continue to see material EBITDA upside if profitability focus continues, but downside-risk should they revert to primarily chasing growth. We look forward to meeting and discussing this with new CEO Stern."

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