Should I Buy PTON? PTON 2026 Analysis

Should You Buy Peloton Interactive Inc (PTON) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

5.730

1 Day change

-1.88%

52 Week Range

10.250

Analysis Updated At

2026/01/26

Peloton Interactive Inc (PTON) is not a strong buy for a beginner, long-term investor at this time. The stock is trading near its 52-week low, with bearish technical indicators, declining financial performance, and significant insider and hedge fund selling. While there are some positive catalysts, such as improved free cash flow and operational efficiency, these are outweighed by negative factors, including declining revenue, net income, and subscriber churn. Given the investor's preference for long-term stability, it is better to hold off on investing in PTON until the company's financials and market sentiment improve.

Technical Analysis

The stock exhibits bearish technical indicators. The MACD is negative and expanding downward, RSI is at 27.214 (neutral but nearing oversold), and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level of 5.845, with resistance at 6.857.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Improved free cash flow of $324 million in fiscal 2025 and $67 million in Q1 FY
Operational efficiency improvements with a 12% margin in Q1 FY
Plans to expand through small-format sections in larger stores to boost visibility.

Neutral/Negative Catalysts

Revenue dropped by 6.01% YoY in Q1 FY
Net income declined significantly by 1644.44% YoY.
Insider selling increased by 2953.02% over the last month, and hedge fund selling rose by 441.81% over the last quarter.
Subscriber churn and reliance on price increases pose challenges.
The stock has declined 30.57% over the past 12 months and is trading near its 52-week low.

Financial Performance

In Q1 FY2026, revenue dropped to $550.8 million (-6.01% YoY), net income fell to $13.9 million (-1644.44% YoY), EPS remained flat at 0.03, and gross margin decreased slightly to 51.51% (-0.64% YoY).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment is neutral to slightly bearish. Price targets have been lowered by multiple firms (e.g., Telsey Advisory to $8, Citi to $8.25, Baird to $8.50). Analysts acknowledge operational improvements but remain cautious due to subscriber churn and financial challenges.

12 Analyst Rating

Wall Street analysts forecast PTON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PTON is 9.48 USD with a low forecast of 6.5 USD and a high forecast of 14 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

8 Hold

0 Sell

Moderate Buy

Current: 5.840

Low

6.5

Averages

9.48

High

Current: 5.840

Low

6.5

Averages

9.48

High

Telsey Advisory

Market Perform

downgrade

$9 -> $8

AI Analysis

2025-12-17

Reason

Telsey Advisory

Price Target

$9 -> $8

AI Analysis

2025-12-17

downgrade

Market Perform

Reason

Telsey Advisory lowered the firm's price target on Peloton to $8 from $9 and keeps a Market Perform rating on the shares. Telsey is providing its outlook for 2026, the analyst tells investors. The firm expects the company to continue to prioritize profitability in 2026. Telsey believes CEO Peter Stern has done a "good job" setting the company's strategy and views the company as in better shape financially.

Guggenheim

Simeon Siegel

Neutral

initiated

2025-12-09

Reason

Guggenheim

Simeon Siegel

Price Target

2025-12-09

initiated

Neutral

Reason

Guggenheim analyst Simeon Siegel initiated coverage of Peloton with a Neutral rating and no price target. The retail sector still seems to be perceived as "structurally sick," but the firm says "holiday brought the cheer," tariffs have been manageable so far and "most importantly and likely going unnoticed" is the fact that the majority of the firm's coverage actually operates at, or close to, their gross margin peaks.

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PTON Should I Buy

PTON Should I Buy

Should You Buy Peloton Interactive Inc (PTON) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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