Peloton Interactive, Inc. (NASDAQ:PTON) shares plummeted around 24% on Thursday, before recovering slightly today (up 7% at the time of writing) following the company’s pre-announced weaker Q2 net adds. Quarterly pre-announced net adds were 12% below the Street estimates, resulting in connected fitness subs 1% below estimates.

The announcement follows press reports of Peloton halting production of bikes/treadmills due to oversupply, which the company is denying.

Analysts at Oppenheimer adjusted their price target on the company’s shares to $40 from $85, lowering 2022/2023 connected fitness subs by 4%/8%, to +39%/+30% year-over-year, implying 920,000/975,000 net adds, compared to 1.2 million in 2021.

However, the analysts maintained their Outperform rating as they believe the company will sustain its leadership position in connected fitness over the long term.