Peloton spins higher after big upgrade from UBS
Peloton shares climbed 15% Wednesday morning after UBS slapped a “buy” rating on the stock, saying it could take off from here.
The bank hiked its price target from $7.50 to $11 (more than 50% higher than current levels), citing recent subscription price hikes and early signs that user declines may be leveling off.
“Interactive visits for May improved to flattish [year-over-year] from down -11% in May, while active users have turned positive in May/June after declines since the beginning of the year,” analyst Arpine Kocharyan wrote in a note indicating better traffic and engagement data.
UBS also sees room for upside to Peloton’s 2026 earnings outlook, thanks to top-line growth and deeper cost cuts. That includes trimming general expenses, curbing tech debt, and shrinking its showroom footprint. UBS said a recent 11% to 12% hike in connected fitness subscription prices could bring in up to $100 million annually, even when factoring in churn.
Analysts polled by FactSet now have an average “overweight” (or buy) rating on the stock for the first time since 2022, as Peloton doubles down on cost cuts and a steadier business model.
Even with today’s boost, Peloton shares are still down about 18% year to date.
