JPMorgan analyst Doug Anmuth raised the firm's price target on Peloton (PTON) to $105 from $58 and keeps an Overweight rating on the shares ahead of the company's fiscal Q4 results on September 10.
The stock closed Tuesday up $7.00, or 9%, to $83.67.
The analyst says that despite the 195% rally year-to-date, he continues to like Peloton shares into earnings and believes there is "significant upside potential" to consensus estimates both near and long term. The company's biggest near-term challenge is keeping up with elevated demand, with bike order-to-delivery times of around seven weeks on average, according to channel checks, Anmuth tells investors in a research note. This is happening even though Peloton doubled its manufacturing pace since March, and management's prior expectation of more normalized delivery times by July or August, adds the analyst. He says that while the delay is not optimal, it bodes well for ongoing demand and sustained sales strength.
Peloton is on JPMorgan's Analyst Focus List and is one of Anmuth top picks along with Amazon.com (AMZN), Facebook (FB), and Snap (SNAP).
Comments
Log in or sign up to join the conversation.