12:47 PM EDT, 05/03/2024 (MT Newswires) -- Peloton Interactive ( PTON ) has a lot to navigate after the company unveiled a $200 million cost cutting program amid a leadership change, Macquarie said in note.

"We remain cautious as PTON has to execute on a simultaneous costout and top-line recovery amid a mgmt change," Macquarie analysts Paul Golding and Emma Liang said.

Peloton said Thursday CEO Barry McCarthy is stepping down as it plans to cut headcount by 15%. It also posted its Q3 results.

"Despite green shoots with this result such as continued cost discipline and encouraging non-app subscriber trends, PTON still has a lot to navigate - recovering sales, retaining subscribers, and ensuring cost-out does not reduce competitiveness," the analysts said.

Macquarie kept its neutral rating on the stock while lowering its price target to $2.53 from $4.50.

Shares of Peloton were up more than 12% in recent trading.

Price: 3.54, Change: +0.41, Percent Change: +12.94