Peloton Interactive Inc (NASDAQ:PTON) reported its fiscal third-quarter results on Thursday.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

Telsey Advisory Group On Peloton Interactive

Analyst Dana Telsey maintained a Market Perform rating, while reducing the price target from $9 to $8.

Peloton Interactive posted a strong beat on adjusted EBITDA, driven by "profitability gains on an improved cost structure and unit economics," Telsey said in a note. The company raised its adjusted EBITDA guidance to $330-$350 million, from its prior outlook of $300-$350 million, she added.

Tariffs are expected to represent a headwind of around $5 million to Peloton Interactive's free cash flow in the fiscal fourth quarter, the analyst stated. Also, the company did not provide any indication of "a roadmap to stabilizing subscriber trends and reinvigorating growth," she further wrote.

Check out other analyst stock ratings.

Needham On Peloton Interactive

Analyst Bernie McTernan reaffirmed a Hold rating on the stock.

Peloton Interactive's margins were "a clear bright spot," with significant progress on cost cuts and sustained positive adjusted EBITDA, McTernan said. He added that the company's total revenue contracted by 13% year-on-year due to continued weakness in hardware sales.

Peloton Interactive's topline growth could continue to "face meaningful headwinds," the analyst stated. "Subscriptions were largely flat sequentially and hardware sales remain under pressure, highlighting the challenges in reigniting demand from new customers," he further wrote.

PTON Price Action: Shares of Peloton Interactive had declined by 6.99% to $6.06 at the time of publication on Friday.

Read More:
• Peloton Moves Toward Profitability, But Can the Turnaround Last?

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