That PTON stock downgrade has Horowitz dropped the stock from a “buy” rating to a “hold” rating. For the record, that matches the analysts’ consensus rating for PTON shares based on 28 opinions.
To go along with that downgrade, the Deutsche Bank analyst dropped his price target for PTON stock from $13 per share to only $4 per share. That represents a potential downside of 25.5%. It’s also well below the analysts’ consensus price prediction of $9.29 per share.
What’s Behind the Bearish Stance on PTON Stock?
Here’s what Horowitz said about Peloton in a note to clients obtained by CNBC:
“While we remain bullish on Peloton having a large TAM ahead of it that can support accelerative growth, particularly given the incremental growth drivers from the App, Commercial business, new modalities/hardware, and growing partnerships, the confidence in underwriting the success of these growth drivers in the medium term is challenging.”
PTON stock is down 4.2% as of Tuesday morning following the downgrade. That comes with over 200,000 shares traded, as compared to its daily average of around 12.5 million.
Investors seeking out even more of the most recent stock market stories are going to want to keep reading!
We have all of the hottest stock market coverage that traders need to know about on Tuesday! Among that is what’s happening with shares of WeWork (NYSE:WE), Alto Ingredients (NASDAQ:ALTO) and Ventyx Biosciences (NASDAQ:VTYX) stock today. You can catch up on these stories down below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.