Peloton Could Exceed 3m Connected Fitness Subscribers in Q3, Says Morgan Stanley
2022.04.08 18:41
By Sam Boughedda
Investing.com — Morgan Stanley analyst Lauren Schenk said Peloton Interactive Inc (NASDAQ:PTON) could exceed three million subscribers in the third quarter.
The analyst said that Morgan Stanley (NYSE:MS)’s new subscriber website activity and traffic tracker for Peloton suggests 264,000 Connected Fitness net adds in Q3, above the Street consensus of 166,000.
If the Connected Fitness net adds pace for Q3 is correct, it would exceed the company’s FY2022 guidance of three million subscribers.
“From a net adds perspective, seasonally this shouldn’t be surprising with 3Q CF [Connected Fitness] net adds accelerating q/q in each of the past 4 years, although the company’s guide implied a significant deceleration,” wrote the analyst.
“Management’s more cautious guide is understandable given considerable macro and micro disruption, but we don’t see any evidence in the data that 3Q experienced the magnitude of deceleration the guide implies,” she added.
However, Schenk is wary that the “recent web traffic could overstate net adds slightly.”
The analyst reiterated an Equal Weight rating on Peloton and a $32 price target.
