Wang & Lee Group board approves 250-to-1 reverse share split
UBS maintained its neutral rating and $7.50 price target on Peloton Interactive (NASDAQ:PTON) stock Wednesday following analysis of the company’s website traffic trends. The stock, currently trading at $6.12, has experienced significant volatility, with InvestingPro data showing a 17% decline in the past week alone.
The investment firm reported that interactive visits to Peloton’s website declined 11% year-over-year in May, representing a deterioration from April’s 4% year-over-year decrease. UBS defines interactive visits as total visits excluding bounced visits, which are those where users enter a site, take no action, and then leave. This trend aligns with broader company challenges, as analysts expect a 9% revenue decline for the current fiscal year.
Despite May’s weaker performance, UBS noted that the June 2025 quarter for Peloton is still tracking better overall, with web traffic down 8% year-over-year on average compared to the March 2025 quarter.
The March 2025 quarterly average showed a 13% year-over-year decline in web traffic, slightly worse than the 12% year-over-year average decrease observed in the December 2024 quarter.
UBS had previously highlighted April’s improvement compared to February-March trends in its analysis of Peloton’s web traffic patterns.
In other recent news, Peloton Interactive reported strong third-quarter revenue of $624 million, aligning with the high end of its guidance range and exceeding some analysts’ expectations. The company also surpassed its subscription guidance, ending with 2.88 million paid subscribers, and achieved a significant gross margin increase to 51%. Macquarie has responded to these results by initiating coverage with an Outperform rating and setting a price target of $10. Meanwhile, UBS maintained a Neutral rating on Peloton, noting slight improvements in EBITDA due to cost savings, but expressed caution regarding future free cash flow growth.
Citi also maintained a Neutral stance but adjusted its price target for Peloton to $8.50, citing improvements in churn rates and hardware gross margins. Truist Securities reiterated a buy rating with an $11.00 price target, highlighting Peloton’s restructuring efforts and the expectation of positive revenue growth in the latter half of fiscal 2026. Additionally, Peloton announced leadership changes, appointing Megan Imbres as Chief Marketing Officer and promoting Francis Shanahan to Chief Technology Officer, aiming to enhance marketing and technological strategies.
These developments reflect Peloton’s ongoing efforts to stabilize and grow its business through strategic leadership appointments, cost management, and product innovation. Analysts remain cautiously optimistic about Peloton’s future, with some projecting continued EBITDA margin expansion and others focusing on potential risks and challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.