Peloton downgraded to Neutral from Buy at UBS

UBS analyst Eric Sheridan downgraded Peloton Interactive to Neutral from Buy with a price target of $58, up from $48. The stock closed Wednesday up 18c to $63.13. The analyst raised forward revenue estimates for both connected fitness product and subscription revenues as his industry checks point to better than expected trends for Peloton as COVID-19 stay at home measures continue to drive higher consumer adoption of at-home fitness. However, with the shares up 120% year-to-date and currently trading at 4.4 times estimated fiscal 2022 sales, Sheridan downgrades Peloton on valuation.