UBS Upgrades Peloton to Buy Raises Price Target to $11

UBS upgraded Peloton's stock rating from Neutral to Buy and raised its price target from $7.50 to $11, citing improved subscription price hikes, stabilizing user engagement, and cost-cutting measures that could lead to profitability by 2026. The bank highlighted an 11% to 12% increase in connected fitness subscription prices, potentially generating up to $100 million annually despite some churn, alongside efforts to reduce operating expenses and shrink showroom footprints. Peloton's active users have recently turned positive, and interactive visits have flattened after previous declines, signaling better traffic and engagement. This optimism has driven Peloton shares up by as much as 15% in trading, though the stock remains down about 18% year-to-date. Analyst consensus shows an average price target of $8.64 with an 'Outperform' rating, while some estimates from GuruFocus suggest a possible downside based on fair value calculations. Overall, the UBS upgrade reflects growing confidence in Peloton's prospects amid a competitive fitness technology market.