What’s the full story? Truist sees Peloton’s stock approaching a point where improving fundamentals can drive a gradual equity recovery. With the balance sheet strengthened and operating expenses significantly reduced, the company is now positioned for sustained free cash flow profitability. Under new leadership, Truist believes the focus has shifted to revenue growth, which is expected to materialize by FY26. Subscriptions, already accounting for roughly two-thirds of revenue, are contributing to expanding profitability and margins.
At current valuations—1.4x sales and 10.3x AEBITDA—the stock appears largely de-risked, offering a compelling entry point for long-term investors.
The analyst team anticipates Peloton’s F3Q25 results, due May 8, to reflect revenue slightly above consensus estimates, based on proprietary card data. While near-term challenges remain, the combination of cleaner financials, leaner operations, and a strategic focus on growth suggests Peloton is on a path to sustainable value creation.
Truist views the current valuation as an opportunity for patient investors to capitalize on the company’s evolving turnaround.
Hims & Hers Health
What happened? On Tuesday, TD Cowen downgraded Hims Hers Health Inc (NYSE:HIMS) to Hold with a $30 price target.
What’s the full story? TD Cowen sees challenges ahead for HIMS in 2025. Following a strong 1Q25 EPS, growth could stall as compounded GLP-1s are no longer offered after May 22. Management’s $725 million weight loss revenue target may prove optimistic if users don’t switch to alternatives like Liraglutide or oral medications, or if they gravitate toward competitors like Lilly Direct and NovoCare.
The intensifying competitive landscape, coupled with a softer consumer environment, adds pressure, particularly for HIMS’ higher-priced, cash-pay offerings, despite FSA/HSA acceptance for weight loss.
The analysts expect 1Q25 EPS upside but note a potential short squeeze given 34% short interest. However, adjusted earnings forecasts for FY25 and FY26 may decline, posing downside risk. While HIMS remains uniquely positioned to personalize and democratize healthcare with its scalable, trusted platform, near-term catalysts are scarce. Weight loss specialty progress post-GLP-1 availability will influence FY26 estimates.
TD Cowen lowers the price target to $30, reflecting ~2.6x FY26 EV/Sales, as the path forward grows uncertain.
Airbnb
What happened? On Wednesday, DA Davidson upgraded Airbnb Inc (NASDAQ:ABNB) to Buy with a $155 price target.
What’s the full story? DA Davidson highlights the resilience of online leisure travel spend, noting that while broader economic slowdowns could impact the sector, the largest OTAs like Booking (NASDAQ:BKNG) and Expedia (NASDAQ:EXPE) are likely to outperform due to increasing global adoption of online lodging and alternative accommodations. The brokerage points out that these players grew gross bookings annually even during the Great Financial Crisis, albeit with modest help from M&A. Airbnb, as the leader in alternative accommodations with over eight million listings globally, benefits from its expansive inventory and affordability initiatives, which have kept pricing flat or down compared to rising hotel rates.
The brokerage emphasizes Airbnb’s ongoing tech stack development, setting the stage for new product launches that could drive asset-light revenue streams. While specifics remain under wraps, features like the re-launched Experiences and the upcoming May 2025 “Summer Release” are expected to boost 2026 estimates.
Additionally, Airbnb’s valuation appears reasonable, trading at a 16.5x 2025 EV/EBITDA, a 14% discount to its one-year average and a 30% discount since January 2022. DA Davidson adds Airbnb to its Best-of-Breed Bison initiative, citing its enduring competitive moat, category-leading margins, strong cash flows, and shares trading at a meaningful discount to long-term intrinsic value
Western Digital Corp.
What happened? On Thursday, JPMorgan launched coverage on Western Digital Corporation (NASDAQ:WDC) at Overweight with a $57 price target.
What’s the full story? JPMorgan notes Western Digital’s successful transition to a pure-play HDD provider following its NAND business separation in February. The company delivered strong March-quarter results, surpassing consensus on revenue, margins, and EPS, driven by robust demand from cloud and hyperscale customers. For the June quarter, WDC forecasts $2.45 billion in revenue, up 7% sequentially, while cautiously navigating potential tariff-related headwinds.
Accelerating shipments of its 26TB and 32TB drives, alongside progress on next-gen HAMR solutions, position WDC for sustained growth, with volume shipments expected in early 2027.
The investment bank highlights WDC’s strong exabyte demand, supported by long-term agreements with hyperscalers extending into mid-2026. Gross margins, guided at 40.5%, are expected to expand further due to favorable pricing and a tight supply environment.
WDC is also strengthening its balance sheet, redeeming $1.8 billion in senior notes and initiating a $0.10 quarterly dividend.
Apple
What happened? On Friday, Rosenblatt downgraded Apple Inc (NASDAQ:AAPL) to Neutral with a $217 price target.
What’s the full story? Rosenblatt downgrades Apple to Neutral, slashing the price target to $217. Sure, F2Q25 showed Cupertino’s mastery of supply chain voodoo and iPhone demand that didn’t tank as feared. But let’s be real: for this stock to pop, AI needs to kick iPhone sales into hyperdrive. And let’s just say, that narrative is looking more like a damp squib than a fireworks show.
So here we are: a finely tuned machine chugging along with muted growth, desperately in need of the next shiny object to wow the masses. All while trading at a premium multiple in a world of tariffs, regulatory chaos, and geopolitical circus acts. Apple’s still Apple—just not the rockstar it used to be. The analysts’ message? Enjoy the show, but don’t bet the farm.
