Peloton Soars 18.8% Amid UBS Upgrade, Further Upside Possible

Peloton's (PTON) shares surged 18.8% to $7.34, backed by solid volume and an upgrade to Buy from UBS analyst. The company is expected to post a quarterly loss of $0.06 per share and revenues of $579.86 million. Peloton currently boasts a Zacks Rank of #2 (Buy).

Peloton Interactive (PTON) shares surged 18.8% to close at $7.34 on Wednesday, driven by solid trading volume and an upgrade to a "Buy" rating from UBS analyst. This move follows the company's recent earnings report, which showed a loss of ($0.12) per share, missing estimates by $0.06, and a 13.1% decline in revenue year-over-year [1].

The upgrade from UBS reflects renewed investor confidence in Peloton's turnaround potential. The company is expected to post a quarterly loss of $0.06 per share in its upcoming report, representing a year-over-year change of +25%. Revenues are projected to be $579.86 million, down 9.9% from the year-ago quarter [2].

Despite the positive earnings expectations, Peloton currently boasts a Zacks Rank of #2 (Buy), indicating a strong buy recommendation from analysts. This ranking is based on a combination of earnings estimate revisions, price momentum, and other factors [2].

The surge in Peloton's stock price comes amidst a broader trend of analyst upgrades and institutional investment in the company. UBS has set a price target of $11.00 for PTON, suggesting a potential upside of 77.99% from its current price. Other analysts, however, have lowered their price targets, with Bank of America reducing its target from $11.50 to $9.50 and Goldman Sachs and JPMorgan both setting neutral ratings with targets of $7.00 [1].

Peloton's recent financial performance has been challenging, with a significant decline in revenue and earnings. However, the company's turnaround efforts and the positive analyst upgrade suggest that investors are optimistic about its future prospects. As the company continues to navigate its financial recovery, investors should keep an eye on its earnings reports and analyst recommendations for further insights into its stock price movement.

References:

[1] https://www.marketbeat.com/instant-alerts/peloton-interactive-nasdaqpton-upgraded-by-ubs-group-to-buy-rating-2025-07-30/

[2] https://www.nasdaq.com/articles/peloton-pton-soars-188-further-upside-left-stock