Update: Morgan Stanley Downgrades Peloton Interactive to Underweight From Equalweight on Slumping Gross Adds, Trims Price Target to $4.50 From $5

11:46 AM EDT, 09/08/2026 (MT Newswires) -- (Update include analyst commentary.) Morgan Stanley downgraded Peloton Interactive (PTON) to underweight from equalweight, saying 'structural headwinds weigh on gross adds' resulting in a declining subscriber growth. According to a note Tuesday, "growing interest in strength training and rising gym adoption are pressuring gross adds for PTON with its current product suite". Analysts at the firm highlighted that Peloton's $50/month subscription fee is the company's main earnings source and with a declining subscriber base, profitability will take a hit. The brokerage also decreased Peloton's price target to $4.50 from $5 on lower estimates. Peloton Interactive has an average rating of overweight and mean price target of $7.90, according to analysts polled by FactSet. Price: 5.14, Change: -0.26, Percent Change: -4.81