** Brokerage J.P. Morgan raises PT on connected fitness company Peloton PTON.O to $8 from $7
** Brokerage says co maintains a solid brand with a valuable subscriber base with less than 2% monthly churn
** Says co is optimizing toward profitable growth while innovating products and expanding its reach
** "Gross margins are improving through mix-shift toward subscription, price increases, rationalized promotional activity, mix-shift toward higher-margin products (Tread portfolio), and supply chain cost improvements," brokerage says
** New PT is a 5.8% downside to stock's last close
** PTON raised its core profit forecast for fiscal year 2025 on Thursday
** Co expects 2025 adj core profit in the range of $300 mln to $350 mln, compared with the $240 mln to $290 mln range it forecast earlier
** Three of 22 brokerages rate stock "buy" or higher, 18 "hold", and one "sell"; median PT is $10 - data compiled by LSEG
** Stock rose 42.9% in 2024
(Reporting by Ateev Bhandari in Bengaluru)
((Ateev.Bhandari@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.