Peloton Gains as Bank of America Turns Bullish on Profit Outlook, New CEO

Peloton Interactive Inc. picked up rare buy rating Monday as Bank of America Corp. upgraded the fitness company by two notches, touting its profit outlook and a positive view of its new chief executive.

Analyst Curtis Nagle highlighted that Peloton reportedBloomberg Terminal fiscal first-quarter adjusted Ebitda well above Wall Street expectations last week and boosted its annual forecast for the metric to between $240 million and $290 million. He anticipates Peloton can top $300 million in adjusted Ebitda this year and $400 million over the next few years as it continues to cut costs.