BofA and Telsey Cut Peloton (PTON) Price Targets

Peloton Interactive, Inc. (NASDAQ:PTON) is one of the 13 Best American Penny Stocks to Invest In. On February 6, BofA Securities lowered its price target on Peloton Interactive, Inc. (NASDAQ:PTON) from $9 to $7.5 but kept its Buy rating on the stock.

This update comes after the company reported its fiscal second-quarter results. Peloton Interactive, Inc. (NASDAQ:PTON) posted revenue of $657 million for the quarter, which was 3% less than Wall Street’s expectations of $677 million. This was driven mainly by lower-than-expected Connected Fitness Product sales to existing Members.

BofA and Telsey Cut Peloton (PTON) Price Targets

On February 6, Telsey Advisory Group also reduced its price target on Peloton Interactive, Inc. (NASDAQ:PTON) from $8 to $6 and kept its Market Perform rating. This update came after the stock experienced a significant decline, which Telsey described as “too severe,” even when the company continues to face growth challenges.

Telsey pointed out that the company has achieved “better financial footing with improved profitability and a stronger balance sheet” compared to the previous year. However, the research firm said that Peloton Interactive, Inc. (NASDAQ:PTON) has “yet to see evidence of a near-term inflection to growth in hardware sales and member count.” Despite the improved financial position, Telsey expects the stock to stay “range bound” in the near term because of uncertainty around the company’s growth prospects.

Peloton Interactive, Inc. (NASDAQ:PTON) is a fitness company that provides users with workout equipment and at-home workout classes and programs.

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Disclosure: None. This article is originally published at Insider Monkey.