Argus Research Downgrades ​Peloton Interactive (PTON) Due to Continued Challenges

​Peloton Interactive, Inc. (NASDAQ:PTON) is one of the Best Penny Stocks That Will Skyrocket. On February 10, John Staszak from Argus Research downgraded the stock from Buy to Hold, without disclosing any price targets. Earlier on February 6, Bernie McTernan also reiterated a Hold rating on the stock without disclosing any price target.

​The ratings come after the company released its fiscal Q2 2026 earnings on February 5. During the quarter, Peloton Interactive, Inc. (NASDAQ:PTON) posted $656.5 million in revenue, reflecting a 2.58% decline year-over-year and below expectations by $18.63 million. The EPS was also negative $0.03, but exceeded consensus by $0.02. The decline was mainly due to a 7% year-over-year decline in Ending Paid Connected Fitness Subscriptions.

​Analyst at Argus noted the downgrade to be driven by continued challenges in the fitness market. The firm added that competition from gyms and in-home fitness companies has led to a decline in Peloton’s subscriptions since the pandemic ended, a trend the firm expects to persist. Moreover, the once-popular online cycling classes have also lost appeal. However, Argus continues to expect that the company can reclaim its lost leadership in the in-home fitness sector.

Peloton Interactive, Inc. (NASDAQ:PTON) is a global fitness company that blends hardware like the Peloton Bike, Bike+, Tread, Row, and Guide with a subscription platform for live and on-demand classes.

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Disclosure: None. This article is originally published at Insider Monkey.