Peloton Interactive, Inc. (PTON)'s Upside Looks Big, But Conviction Remains Split

Peloton Interactive, Inc. (NASDAQ:PTON) is among the best NASDAQ stocks under $10 to buy. As of December 15, Peloton Interactive, Inc. (NASDAQ:PTON) has a ‘Hold’ rating from half of the analysts covering the stock. With a median price target of $9.80, the stock has an upside potential of 56.80%.

On December 10, Simeon Siegel from Guggenheim assumed coverage on Peloton Interactive, Inc. (NASDAQ:PTON) with a ‘Neutral’ rating, according to TheFly. The analyst believes the retail sector appears to be “structurally sick,” but “holiday brought the cheer,” adding that tariffs have been largely manageable so far and “most importantly and likely going unnoticed” is the fact that most of the firm’s coverage runs at, or near, its gross margin highs.

This follows a series of analyst revisions in November. On November 20, Ronald Josey from Citi trimmed the price target on Peloton Interactive, Inc. (NASDAQ:PTON) to $8.25 from $9.50, while keeping a ‘Neutral’ rating on the stock. According to TheFly, Citi lowered its subscriber forecasts for the company by 3% for the full year “to reflect greater churn.” Just a day earlier, Morgan Stanley lifted the price target on the company to $6.50 from $6, keeping an ‘Equal Weight’ rating on the stock, citing model changes from Q3 earnings.

Peloton Interactive, Inc. (NASDAQ:PTON) is a New York-based provider of fitness and wellness products and services. Incorporated in 2012, the company offers connected fitness products and Peloton App memberships, as well as leases Peloton Bike+ products.

While we acknowledge the potential of PTON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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