$PTON

Peloton Interactive Inc. (PTON) saw a large bullish options bet, with 99.5% of 45,506 contracts being calls. The dominant trade was a Jan. 2027 $6/$8 call spread, requiring a 23.5% and 64.6% increase respectively. PTON trades at $4.86, 47% below its 52-week high. Implied volatility is elevated, and skew is near-zero, indicating aggressive call buying.

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Peloton Interactive (PTON) was downgraded by Morgan Stanley to Underweight with a $4.50 price target, citing declining subscriber growth. UBS maintained a Buy rating but lowered its target to $10. The author plans to buy PTON shares, citing its strong balance sheet.

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Peloton (PTON) shares fell after Morgan Stanley downgraded it to Underweight, citing expected negative earnings revisions. The firm previously had an Equal-weight rating. PTON is a fitness equipment and media company.

Analysts made several calls on Tuesday, including upgrades for Eaton (ETN) to buy with a $515 target, Nvidia (NVDA) as strong buy, Apple (AAPL) as buy ahead of its iPhone event, and Lockheed Martin (LMT) to buy. Other notable actions include initiations for Willis Lease Finance (WLFC) as buy, JBT Marel (JBTM) at buy, and UiPath (PATH) as buy. Downgrades include Peloton (PTON) to underweight.

Roivant Sciences (RVN) shares rose 24% after positive Phase 2 trial results for its pulmonary hypertension treatment. Novartis (NVS) fell 12% due to disappointing Phase 3 trial results. Peloton (PTON) dropped 4% following a Morgan Stanley downgrade. Boston Scientific (BSX) declined 2% after reporting a cyberattack impact. Bloom Energy (BE) gained 6% ahead of its S&P 500 inclusion. Quantum computing stocks rose on U.S. investment news.

Morgan Stanley downgraded Peloton to Underweight, citing consumer shifts toward strength training and gyms. Analyst Nathan Feather reduced the price target to $4.50 and lowered fiscal 2027 and 2028 estimates, noting a 78% drop in gross additions and 9% decline in subscribers. He attributes the weakness to structural headwinds and believes consensus forecasts are too optimistic.

Peloton (PTON) reported its first annual net profit of $63M for fiscal 2026, but stock fell 16% in August due to declining subscriptions and memberships. Q4 revenue was $608M, beating estimates, with subscription revenue up 7% YoY. Analyst Curtis Nagle cut price target to $7 from $7.50, citing subscriber trends.

Peloton (PTON) reported its first full year of positive net income at $63M, with fiscal 2026 revenue of $2.446B. Quarterly revenue was $608M, up $1M YoY. Free cash flow rose to $378M, and net debt was cut by 80%. However, paid subscriptions fell 8.8% YoY to 2.553M, and hardware revenue dropped 14% YoY. The company expects further subscriber declines and a 3.9% revenue decline in fiscal 2027.