Home / Business and Economy / Peloton Surges 47% After Surprise Profit and Goldman Upgrade
Peloton Surges 47% After Surprise Profit and Goldman Upgrade
9 Aug
Summary
- Peloton stock gained 10.3% on Friday, up as much as 11.5% earlier
- Goldman Sachs upgraded Peloton to "buy" and raised price target to $11.50
- Peloton reported unexpected Q4 profit, with sales decline slowing
On August 9, 2025, Peloton (NASDAQ: PTON) stock closed out the previous trading session with significant gains. The company's share price had risen by 10.3% on the day's trading, reaching as high as 11.5% earlier in the session.
Peloton's valuation has been boosted by bullish coverage from Goldman Sachs. In a new analyst note published just yesterday, the investment firm upgraded Peloton's rating from "neutral" to "buy" and increased its one-year price target on the stock from $7 per share to $11.50 per share. Even after the substantial gain in Peloton's valuation on Friday, Goldman's new price target still suggests an additional upside of approximately 47%.
The positive analyst coverage comes on the heels of Peloton's better-than-expected financial results for the fourth quarter of its last fiscal year, which ended on June 30. While the company's sales still declined by around 6% year-over-year in the quarter, its cost-cutting initiatives have pushed the business to an unexpected profit of $0.05 per share. Wall Street had anticipated a loss of $0.05 per share for the period.
Furthermore, Peloton's management anticipates that the company's sales decline will slow in the current fiscal year, and there are indications that its efforts to grow sales among enterprise customers are bearing fruit. The company's margin improvement also appears to be sustainable in the near term.
