Peloton’s stock closed at $12.90 yesterday, an 8.7% drop from its record high of December 2020.

This latest decline came after Goldman Sachs (NYSE ) offered a moderate forecast and claimed it has raised $750 millions in debt through JPMorgan and JPMorgan.

Scott W. Devitt, Stifel Analyst, downgraded shares from Hold to Buy today with a target price of $14.00 per share.

“While we acknowledge that it is still early in the company’s transition, visibility into the normalized growth rate of the business has yet to emerge. Even though the company has lowered its prices for core hardware products, guidance for 2Q only calls for 18K net consecutive Connected Fitness subscriber additions. An adj will result from the price cuts implemented in F4Q. EBITDA is forecast to be lower than our consensus and expectations. We expect it will take several quarters to determine a more normalized pace of connected fitness subscriber growth, and we are materially lowering our estimates as we take a wait-and-see approach to initiatives aimed at reinvigorating growth and reducing costs,” Devitt said in a client note.

On the other hand, JMP analyst Andrew Boone finds Peloton’s valuation “attractive” after a significant move lower. Peloton is currently valued at $25.00 per share by the analyst.

“We believe growth expectations have now been sufficiently reduced and we note our 2023 revenue estimate is roughly unchanged. Given our view that Peloton’s Connected Fitness workout experience is best in class and that Peloton can continue to take share from gyms given its fantastic user experience (members worked out 18.8x per month last quarter), convenience (at home and on demand), and lower cost (relative to boutique fitness classes), while the One Peloton Club and pricing optimization are unlocking demand and leading to better monetization, we are looking through current revenue visibility issues and upgrading shares.”

Similarly, JPMorgan analyst Doug Anmuth “likes” the risk-reward at current levels.

“The near-term environment remains challenging & significant cost savings will take time. PTON is very much a show-me story, but we like the risk/reward at current levels, particularly as the market assigns zero to negative value to CF Products, & only 1.3x ‘23E Revenue & 3.1x ’23E Gross Profit to the company overall,” Anmuth told clients.

By Senad Karaahmetovic