UBS upgraded Peloton (PTON) to Neutral from Sell with a price target of $10, up from $2.50. The firm sees the company’s EBITDA being supported from further cost cutting beyond the announced $200M, driven mostly by lower operating expenditures. Expectations have been reset to little to no growth over the next two years and the new CEO transition offers a chance to “further reset the bar against buy-side expectations that are more reasonable now,” the analyst tells investors in a research note. UBS also likes that Peloton’s CEO compensation package is tied to revenue and operating income and EBITDA and free cash flow performance.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PTON:
- Peloton Strengthens Leadership with New Board Appointment
- Buy/Sell: Wall Street’s top 10 stock calls this week
- Peloton Interactive (PTON) Rises from the Ashes as Stock Surges 171%
- Peloton price target raised to $6.20 from $3.90 at Deutsche Bank
- Peloton (NASDAQ:PTON) Stock Rises with New CEO Appointment