Peloton Stock Jumps 17% as Analyst Predicts Price Hikes

UBS upgraded Peloton stock to Buy from Neutral and lifted its price target to $11 from $7.50. (Getty Images)

Shares of Peloton Interactive were climbing Wednesday ahead of the company’s fourth-quarter earnings after UBS counseled investors to buy the connected fitness stock.

In a research note, UBS analyst Arpine Kocharyan upgraded Peloton to Buy from Neutral and lifted her price target to $11 from $7.50, in part because of the potential for revenue growth driven by price increases and improving user trends.

Peloton stock was up 17% to $7.24 on Wednesday.

UBS estimates Peloton will pursue an 11% to 12% price increase for its monthly connected fitness subscription, which—after accounting for subscriber churn—could drive around $90 million of new annual revenue. Consensus estimates call for subscription revenue to decline in fiscal 2026, implying Wall Street hasn’t yet priced in these forecast monthly fee increases, Kocharyan said.

The key, of course, is to raise prices without losing too many subscribers. Here, too, UBS sees positive trends. The firm’s analysis of Similarweb data showed June web traffic to Peloton down 1% from a year ago, an improvement on the 11% drop in May. Time spent per interactive visit, meanwhile, improved 2% in June—arresting a yearslong downward trend.

If UBS is correct about the price increases and the optimistic outlook for customer churn, Peloton may provide better-than-expected profit guidance for fiscal 2026 when it reports fourth-quarter earnings on Aug. 7.

But management faces a “balancing act,” Kocharyan wrote, in communicating upside from price hikes while also waiting until the holiday season before announcing any price actions.

Heading into the earnings print, Peloton stock has more than doubled from 52 weeks ago, when it closed at $3.56, according to Dow Jones Market Data. Shares are down 17% in 2025, however, after the company posted disappointing third-quarter financial results.

Write to Nate Wolf at nate.wolf@barrons.com