Peloton downgraded by Credit Suisse, which slashes price target to $50

Peloton stock fell nearly 4% in premarket trading after Credit Suisse analyst Kaumil Gajrawala downgraded it to neutral and lowered its price target to $50 from $112.

Peloton Interactive was downgraded to neutral from outperform at Credit Suisse, as it lowered its price target to $50 from $112.

Analysts led by Kaumil Gajrawala lowered their rating due to improving mobility and a return to in-person fitness after a strong 2021. The Credit Suisse subscriber estimate of 800,000 net adds is below company guidance between 1 million and 1.1 million, and Peloton has been increasing advertising and discounting more to fight slowing demand, which "change[s] the economic model."