Goldman Sachs upgrades Peloton stock to Buy on new management initiatives

Published 08/08/2025, 09:08
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Investing.com - Goldman Sachs upgraded Peloton Interactive (NASDAQ:PTON) from Neutral to Buy and raised its price target to $11.50 from $7.00, citing new management initiatives aimed at platform growth. The stock has shown strong momentum, gaining 7.7% in the past week and trading at $7.11, though InvestingPro data indicates high price volatility with a beta of 2.09.

The investment bank views Peloton as a company with new management and fresh initiatives focused on platform growth and monetization for the coming years, with potential for higher incremental returns on capital through free cash flow conversion. According to InvestingPro analysis, the company maintains healthy liquidity with a current ratio of 1.65, though it trades at a notably high EV/EBITDA multiple of 251.8x.

Goldman Sachs noted that investors receiving more specific details about how these strategies will be deployed and executed against, both in terms of duration and scope, could help build investor confidence in the next 12-18 months. For deeper insights into Peloton’s financial health and growth prospects, InvestingPro offers an extensive research report with detailed analysis of key metrics and growth drivers.

The firm expressed an initial positive view on Peloton’s strategic announcements, stating they address a wider societal shift toward health and wellness with products and platforms that can be scaled and innovated against in the coming years.

Goldman Sachs adjusted its forward operating estimates for Peloton following the company’s earnings report and management commentary, leading to the rating upgrade and price target increase.

In other recent news, Peloton Interactive Inc . reported a strong performance in its Q4 2025 earnings call, surprising investors with better-than-expected financial results. The company announced an earnings per share (EPS) of $0.05, significantly exceeding the forecasted EPS of -$0.05. Additionally, Peloton’s revenue surpassed expectations, reaching $607 million compared to the anticipated $580.54 million. This represented a 4.54% positive surprise in revenue figures. These results have garnered attention from analysts and investors alike. The unexpected earnings and revenue figures highlight Peloton’s ability to perform beyond market projections. Such developments are likely to influence future assessments and recommendations from financial analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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