By Kannaki Deka

(Reuters) -Peloton Interactive has appointed former Apple executive Peter Stern its CEO and president effective Jan. 1, the company said on Thursday, to steer a turnaround following a post-pandemic demand slump, sending its shares up more than 24%.

Stern, 52, is currently president of Ford Motor's digital services business, responsible for a portfolio of subscription services.

He previously spent more than six years as Apple's vice president of services, managing Apple TV+ and Sports, Apple Fitness+ and other services.

"His background in subscription services, especially the more applicable Apple Fitness+, is a great direct experience to help with the company," said Paul Cerro, chief investment officer at Cedar Grove Capital Management.

Peloton has been run by interim co-CEOs since May, when Barry McCarthy, a former Spotify and Netflix executive, stepped down after just over two years as the top boss.

The fitness-equipment maker brought in McCarthy in February 2022 as it struggled to maintain the breakneck growth it enjoyed in the wake of the COVID-19 pandemic.

Besides implementing cost cuts and striking retail partnerships, McCarthy also led a rebranding push to make Peloton a software-focused company, leaning on its exclusive content to drive subscriber growth.

"It will be critical to understand how Peter will aim to balance growth versus profits as we still see meaningful opportunity ahead for shares, assuming profits are prioritized," BMO Capital Markets analyst Simeon Siegel said.

For the holiday quarter, Peloton said it expects revenue to be between $640 million and $660 million, below Wall Street expectations of $671.4 million, according to data compiled by LSEG.

However, it raised its fiscal 2025 EBITDA (earnings before interest, taxes, depreciation, and amortization) forecast, a key metric watched by investors.

The company now expects to generate between $240 million and $290 million in adjusted EBITDA for fiscal 2025, versus a prior expectation of $200 million to $250 million.

(Reporting by Kannaki Deka in Bengaluru; Editing by Savio D'Souza and Pooja Desai)