Peloton Interactive Inc. shares fell 7.9% in afternoon trade to a five-week low after UBS analyst Arpine Kocharyan became even more bearish on the home fitness company, citing declining sales and continued subdued profitability prospects. Kocharyan reiterated the sell rating she had on the stock since Jan. 18, 2021, when the COVID flare-up the company was experiencing was beginning to wear off, but cut her price target by about 38% from $13 to $8, reflecting the Stock makes biggest peloton bear on Wall Street. The target cut comes about a week after the company reported a fifth straight quarterly loss and a fourth straight drop in revenue, according to FactSet. Kocharyan noted three issues driving her bearish stance: 1) higher upfront customer acquisition costs (CAC) when the company needs to “significantly” reduce marketing spend; 2) still a fairly capital-intensive business, even if the company aims to fund hardware purchases in exchange for higher recurring subscription revenue; and 3) does everyone need a bike as much as a phone? Of the 32 analysts polled by FactSet, only two are bearish, while 15 are bullish and 15 are neutral. The stock is down 28.1% over the past three months, while the S&P 500 is down 5.9%.
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