Buoyed by strong demand for both existing and new products, Peloton Interactive (NASDAQ:PTON) is well positioned for a sharp move upward. That's the opinion of analyst Edward Yruma of KeyCorp's KeyBanc Capital Markets, who on Wednesday dramatically raised his price target on Peloton.

The company's shares, Yruma believes, could hit a "street high" of $160 per share, which is 27% higher than the current price; his former target was $120. The analyst is maintaining his overweight recommendation on the stock.

Yruma's monitoring of Peloton's business indicates that consumers are still hungry for its stationary bicycles in particular, even though competitors are nipping at its heels.

A Peloton user taking a fitness class.

Image source: Peloton Interactive.

"Checks point to strong Peloton demand (and lengthy wait times) despite readily available competitor product," he wrote in a research note. "Our bi-monthly checks point to a 5- or 10-week wait for Bike and Bike+. Wait times continue to lengthen and our checks point to a very strong upgrade cycle to Bike+ from existing customers."

Another factor that should support demand is the widespread gym closures (temporary and permanent) around the country due to the coronavirus pandemic. 

Last month, Peloton introduced the Bike+, an upgraded version of its Bike exercise machine. The latter's price was dropped by $350 to $1,895. The company also announced a less-expensive version of its Tread device, with the existing model of the treadmill being rechristened the Tread+.

Investors don't seem to be persuaded by this new jolt of enthusiasm for Peloton stock. In Wednesday's trading, the shares were down by 5.8%.