.August 20, 2024 10:06 AM

TD Cowen analysts maintained a Hold rating and $3 price target on Peloton Interactive (NASDAQ:PTON) ahead of the company’s fiscal Q4 results on August 22. They anticipate a sequential decline in revenue due to seasonality, but expect margins to improve from a shift away from hardware and restructuring efforts. Year-over-year declines in units and revenue are projected, but performance is expected to improve sequentially. Connected Fitness subscriptions are forecasted to show a slight year-over-year decline as well.

Management’s outlook aligns with Blackledge’s revenue and EBITDA estimates for fiscal Q4. However, the analysts slightly lowered their long-term estimates as they rolled their discounted cash flow (DCF) model forward to 2025.