Canaccord upgrades Peloton to Buy, sees ‘turning point’

Canaccord upgraded Peloton (PTON) to Buy from Hold with an unchanged price target of $10 following a transfer of coverage. Peloton is the clear leader in the connected fitness industry, which it invested in early on and built a 6M loyal member base that has a high-margin recurring revenue stream, the analyst tells investors in a research note. The firm expects the company’s revenue to inflect in fiscal 2026 as management implements revenue initiatives, and for subscription growth to follow in fiscal 2027 with the addition of adjacent products. Peloton “is at the turning point in its journey where there is meaningful upside potential from current levels,” contends Canaccord.