TD Cowen analysts maintained a Hold rating and $3 price target on Peloton Interactive (NASDAQ:PTON), ahead of the company’s upcoming fiscal Q4 results on August 22.
The analysts expect a sequential decline in revenue due to seasonality, though margins are anticipated to improve, driven by a shift away from hardware and the benefits of restructuring efforts. The analysts project year-over-year declines in both units and revenue, though performance is expected to improve sequentially. Connected Fitness subscriptions are forecasted to show a slight year-over-year decline as well.
While management’s outlook aligns with Blackledge’s revenue and EBITDA estimates for fiscal Q4, the analysts also noted that their long-term estimates were slightly lowered as they rolled their discounted cash flow (DCF) model forward to 2025.