Peloton falls as Morgan Stanley downgrades to 'underweight'

Peloton Interactive

08/09/2026 16:42

** Shares of fitness products maker Peloton PTON.O down ~5% at $5.12 in morning trade
** Morgan Stanley downgrades stock to "underweight" from "equal-weight", cuts PT to $4.50 from $5
** Brokerage says co is getting "outmuscled" by a shift toward strength training, with consumers increasingly favoring weights-based workouts over the cardio-focused fitness formats that underpin PTON's business
** Adds that growing gym participation also pressures co's at-home fitness model, arguing consumers are increasingly choosing fitness clubs over premium connected-equipment subscriptions
** Notes group cycling, one of co's core fitness categories, has been declining for years, suggesting a shrinking addressable market.
** Nine of 21 brokerages rate the stock "buy" or "higher", 11 "hold" and one "sell"; their median PT is $7.50 — data compiled by LSEG
** Including session's moves, stock has fallen ~16% this year

 (Reporting by Shania S Thomas in Bengaluru)
 ((shanias.thomas@thomsonreuters.com;))