Peloton (PTON) Stock Drops as Morgan Stanley Flags Subscriber Decline

TLDR

• Morgan Stanley downgraded Peloton to Underweight from Equal-weight, cutting its price target to $4.50 from $5.50
• Gross subscriber additions have fallen roughly 78% from peak, with connected fitness subscriber growth at -9% year-over-year in fiscal 2026
• Morgan Stanley analyst Nathan Feather says headwinds are structural, not cyclical, pointing to shifting consumer fitness trends
• UBS also cut its price target to $10.00 from $11.00, trimming its FY2027 EBITDA estimate to $491M from $526M citing higher subscriber churn
• PTON stock fell as much as 6.1% in premarket trading, with the stock sitting well below its 52-week high of $9.20

Peloton stock dropped as much as 6.1% in premarket trading on Tuesday, hitting $5.07, after Morgan Stanley downgraded the stock to Underweight from Equal-weight and slashed its price target to $4.50 from $5.50.

Peloton Interactive, Inc., PTON

Analyst Nathan Feather led the call, warning that negative earnings revisions would raise serious questions about the long-term value of the stock.

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