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Why Peloton Stock Jumped to a Record High Today

By Joe Tenebruso – Sep 2, 2020 at 4:48PM

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Analysts see even more gains ahead for investors.

What happened

Shares of Peloton Interactive (PTON 6.12%) climbed 8.8% to a new closing high of $91.06 on Wednesday after a respected investment bank named it one of their top stock picks. 

So what 

JPMorgan analyst Doug Anmuth reiterated his firm's overweight rating on Peloton's stock and boosted his price forecast from $58 to $105. His new target price represents potential gains for investors of roughly 15%, compared to the stock's closing price on Wednesday.

A woman is exercising on a Peloton bike while watching a fitness class.

Peloton's home-based exercise equipment is selling well during the COVID-19 crisis. Image source: Peloton Interactive.

Anmuth said the fitness equipment maker is enjoying booming demand for its internet-connected exercise bikes and treadmills, due in part to coronavirus-related fears that are keeping fitness enthusiasts out of gyms and in their own homes. In fact, Anmuth said Peloton's biggest challenge is simply being able to make its machines fast enough. In turn, Anmuth expects Peloton to crush Wall Street's sales estimates in the quarters ahead.

Now what

Investors will have the opportunity to see if Anmuth is correct when Peloton reports its fourth-quarter earnings after the market close on Sept. 10. The company's leadership team will also host a conference call at 5 p.m. EDT that same day, during which it will likely provide an update on its future growth expectations. 

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.

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