Peloton is finally showing signs of sustained growth after an extended recovery, according to Truist. “Three years+ after we downgraded PTON to Hold from Buy, we believe the stock is finally nearing a point where the company’s improving fundamentals should support a gradual recovery of its equity,” analyst Youssef Squali wrote in a Monday note. Truist upgraded the fitness equipment stock to buy from hold, and reiterated its $11 per share price target. The firm’s forecast calls for nearly 75% upside from Friday’s $6.29 close. In premarket trading Monday, shares were up more than 5%. PTON YTD mountain Peloton stock in 2025. The stock was one of the pandemic-era darlings as consumers rushed to purchase Peloton bikes amid lockdown orders. It spent heavily to support the rapid growth only to have demand dry up, forcing CEO changes and layoffs as well as efforts to stave off a cash crunch . The company has producing back-to-back better-than-expected quarterly results in October 2024 and February 2025 . Peloton’s fiscal second-quarter results earlier this year saw the company inch closer to profitability, and the analyst expects to see revenue growth return in fiscal 2026. “We believe the stock is finally nearing a point where the company’s improving fundamentals should support a gradual recovery of its equity,” Squali said. “With the BS cleaned up and [operating expenses] materially reduced to ensure sustained [free cash flow] profitability, we believe the new leadership is refocusing on revenue growth (in FY26, by our est.).” Peloton stock has slipped about 28% in 2025.
