(MarketWatch) – Shares of Peloton Interactive Inc. PTON ran up 7.9% toward record territory in premarket trading Wednesday, extending the 25.9% rally over the past six sessions, after J.P. Morgan analyst Doug Anmuth boosted his price target to the highest among Wall Street analysts, citing optimism ahead of next week’s earnings report.
Peloton is scheduled to report fiscal fourth-quarter results on Sept. 10. Anmuth reiterated the overweight rating he’s had on the at-home fitness company since starting coverage in October, saying the stock is on J.P. Morgan’s U.S. Analyst Focus List. He raised his price target to $105 from $58. Of the 26 analysts surveyed by FactSet, Anmuth’s target is now the highest, and well above the average target of $67.38.
Anmuth said Peloton’s biggest challenge is keeping up with elevated demand amid the COVID-19 pandemic, has order-to-delivery times has averaged 6 to 7 weeks.
“While the delay is not optimal, we believe it bodes well for ongoing demand and sustained top-line strength and could also cap marketing spend longer than we previously expected,” Anmuth wrote in a note to clients. The company went public in September 2019 at an IPO price of $29. The stock has nearly tripled (up 195%) year to date, while the S&P 500 SPX has gained 9.2%.