Peloton Interactive (NASDAQ:PTON), the at-home fitness company, has experienced a significant decrease in its stock value in 2023, with a 45% drop reported as of Monday. The downward trend is expected to continue, according to a forecast by a UBS analyst.
Arpine Kocharyan of UBS has revised her predictions for Peloton's future performance downwards. She reduced her price target from $8 to $4, indicating a predicted further decline of 10% from the closing stock price of $4.46 on the last trading day. Despite this adjustment, Kocharyan has maintained her Sell recommendation for the company's shares.
Kocharyan's projections for earnings have also been revised downwards through fiscal 2026. This includes estimates for earnings before interest, taxes, depreciation, and amortization (EBITDA).
In addition to the earnings forecast, Kocharyan has adjusted her revenue estimate for the year 2024. The new projection stands at $2.86 billion, a reduction from the previous estimate of $2.98 billion. Despite this revision, the new figure still surpasses the Wall Street consensus estimate of $2.79 billion as reported by FactSet.
These adjustments in financial forecasts reflect a pessimistic outlook on Peloton Interactive's growth potential in the forthcoming years. The company's market performance will be keenly watched by investors and analysts alike to see if these predictions hold true.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.