Peloton (PTON) Charts a Path to Profitability Under CEO Peter Stern as Telsey Advisory Group Applauds Strategic Leadership

Peloton Interactive Inc. (NASDAQ:PTON) is one of the low priced stocks to buy with high upside potential. On December 17, Telsey Advisory lowered the firm’s price target on Peloton to $8 from $9 and kept a Market Perform rating on the shares. In its 2026 outlook, Telsey Advisory Group noted that it expects the company to remain focused on prioritizing profitability. The firm commended CEO Peter Stern for his strategic leadership and highlighted the company’s significantly strengthened financial position.

Earlier on December 9, Guggenheim analyst Simeon Siegel initiated coverage of Peloton with a Neutral rating but set no price target on the shares. While the retail industry is still often viewed as structurally impaired, Guggenheim noted that the holiday season provided a significant boost. Despite broader economic concerns, the impact of tariffs has remained under control.

Peloton (PTON) Charts a Path to Profitability Under CEO Peter Stern as Telsey Advisory Group Applauds Strategic Leadership

In FQ1 2026, Peloton Interactive Inc. (NASDAQ:PTON) generated $551 million in total revenue for the quarter, largely supported by $398 million in subscription revenue, while Connected Fitness products contributed $152 million. Although paid subscriptions fell 6% year-over-year to 2.732 million, Peloton improved its average net monthly churn to 1.6%, which was a 20-basis point enhancement from the previous year.

The company is leaning heavily into technological innovation and retail expansion to offset a 5% drop in equipment sales. New initiatives include Peloton IQ, an AI-powered personalized coaching tool, and the launch of the Cross-Training and Pro Series hardware featuring computer vision for movement tracking. To broaden distribution, Peloton Interactive Inc. (NASDAQ:PTON) established a partnership with Johnson Fitness and Wellness and opened 10 micro-stores in the US.

Peloton Interactive Inc. (NASDAQ:PTON) provides fitness and wellness products and services in North America and internationally.

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