Truist sets the target price of 11 US dollars News ad

Peloton Interactive’s Stock NASDAQ: PTON I saw a recent increase in stock prices, closing at a higher level April 29, 2025After Truist Financial NYSE: TFC Modernized Company rating.

This positive development gives the problem of hope against the background of previous problems of the post-pandemic struggle and significant reserves.

Truist update Peloton emphasizes the improvement of financial health, especially its progress in profitability and cost control, which implies a possible turning point.

However, constant difficulties in raising Revenue growth And significant doubts about the market require a careful optimistic prospect, since the company works in its complex recovery strategy.

Peloton path to $ 11

Truist Financial analyst Modernized Peloton rating from Hold buyWith Price for $ 11Indicating the substantial potential growth from the end of April of trade values. This update is based on confidence in General Director Peter Sternwhich adopted the leadership on January 1, 2025, and its commitment to achieving the financial goals of the company in the 2025 fiscal year.

These goals reflect the emphasis on financial discipline. Peloton designs the income of the 25th financial year. 2.43 billion dollars up to 2.48 billion dollars (Approximately 9% compared to last year, decrease in the middle), along with the adjusted EBITDA in the amount of 300 to 350 million US dollars and positive Free cash flow (FCF) At least 200 million dollars.

Truist believes Peloton Significant cost reduction Successfully “correct” operating expenses, setting the base to increase profitability and anticipate a consistent annual Generation FCF at least 210 million dollars For the 25th financial year and 26 financial year. In addition, Truist noted Peloton progress in strengthening balance and Improving the leverwhich provides an increase in increased flexibility for strategic investment in growth while maintaining a positive cash flow.

Peloton improves vital organs

The financial reset of the peloton shows real traction. In the second quarter, the 25 financial year has delivered its The fourth quarter of a positive free cash flowGenerating 106 million dollars– Acute rebound from 37 million dollars In the same quarter of last year. Peloton raised his whole year on the heels of this impulse The free goal of the cash flow of at least 200 million US dollarsField

Adjusted EBITDA also turned around the corner, reaching 58.4 million dollarsup the loss 81.7 million dollars A year earlier. This performance forced the leadership to increase its leadership in the 25th financial year on 300-350 million dollarsField

These winnings are related to the decisive action: May 2024 Plan of restructuring aimed at the law 200 million dollars in annual savings By the end of the year. In the second quarter, operating expenses fell 25% compared to last yearheaded by s Reducing sales and marketing by 34% And A drop in total and administrative expenses by 18%Field

Marge up. While the total gross profit came to 47.2%Subscription to business supported strong 67.9%And The gross margin of connected fitness products increased to 12.9%from 4.3% Last year, due to improving pricing, efficiency of operation and a stronger mixture of products. The company is now aimed at 50% gross margin Throughout the year.

The balance is also healthier. Pure debt fell 30% compared to last year to 670.3 million dollars. USAIt is supported by successful mid -2024 debt refinancing This improved financial flexibility.

Peloton focus switches to growth

With a stronger financial fund, Peloton shifts his attention to the revival income growth, Although the problems remain. In the second quarter, the 25 financial year has decreased income 9% compared to last yearreflecting both wider market pressure and internal Cornation adjustmentsNevertheless, the structure of the company’s weaker costs provides a more stable base for recovery, and throughout the year it insists similar trends, like Peloton continues to recalburize for Long -term growthField

Subscriber trends offer a mixed picture. Paid connected subscriptions to fitness turned out to be slightly higher than the expectations in 2.88 millionBut this marked Consistent fall 21,000 And 4% decrease From a year earlier. From the bright side, Shabby improved To 1.4%showing the early signs that the efforts to retain workIN Although the rate remains slightly increased compared to last year.

Meanwhile, Subscriptions to a paid application fallen 19% compared with 580,000As a result of a deliberate rollback in marketing for a particular application, since Peloton works to increase General effectivenessField

The device of investors is still divided. Since mid -April 2025, approximately 69 million shares-or 17.93% of the float– They were briefly sold, emphasizing the delaying skepticism. But a high short interest can reduce both ways: although it signals caution, it also lays the soil for potential volatility or Short coatings of rallies If the peloton pulse continues.

The next stage of the Peloton: execution is the key

Peloton Interactive is at a critical stage in its corporate narrative. The company has successfully completed a difficult Operational turnobviously improving its cost structure, reaching a consistent Positive free cash flowand increasing profitability indicators.

Recent Analytics updates How Truist recognizes these achievements. Under the new leadership, including General Director Peter Stern And COO Charles KirolThe main attention was clearly switched from growth at the entire price to the creation of a sustainable financial fund.

However, the journey is far from completed. The market expects convincing evidence that this is newly acquired stability can serve as a starting platform for the updated, Sustainable growth of the top lineThe field while confidence is included in the new team of the executive branch, specific details about specific new growth strategies, in addition to clarifying existing channels and products, have not yet appeared completely.

To Trends in subscribers and income Turn their negative trajectory, market skepticism, reinforced with high short interest, will probably remain. Cautious optimism exists for Peloton’s path to profitabilityBut investors will observe future performance to see if the company will be able to manage the costs and effectively compete and expand its user base within the demanding sector.

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