Citi Cuts Peloton (PTON) PT to $8.25, Lowers Subscriber Forecast Following Rise in Customer Turnover

Core Insights - Peloton Interactive Inc. is viewed as a promising stock with significant upside potential despite recent challenges [1] - Citi analyst Ronald Josey has reduced Peloton's price target to $8.25 from $9.50 while maintaining a Neutral rating after the company's FQ1 2026 earnings report [1][3] - The company has lowered its full-year subscriber forecast by 3% due to increased customer turnover [1] Financial Performance - Peloton's total revenue for FQ1 reached $551 million, with $152 million from Connected Fitness products and $398 million from subscription revenue [2] - This revenue represents a year-over-year decline of 6.01%, but it exceeded Street estimates by $9.72 million [2] - The company's EPS for the quarter was $0.06, surpassing guidance by $0.05 [2] Subscriber Metrics - Connected Fitness paid subscriptions totaled 2.732 million in the quarter, reflecting a 6% decrease from the previous year [3] - The average net monthly churn improved to 1.6%, which is better by 0.2% year-over-year [3] - Revenue from Connected Fitness products declined by 5% due to lower equipment sales and deliveries [3] Company Overview - Peloton Interactive Inc. offers fitness and wellness products and services both in North America and internationally [4] - The company provides various connected fitness products, including the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, and Peloton Row [4]