Peloton surges 11% to another record as new biggest bull JPMorgan says the stock can soar 18% from current levels

• JPMorgan on Tuesday boosted its Peloton price target to $105 from $58, implying a roughly 18% upside. It also added the stock to its top picks list.
• Shares of Peloton surged as much as 11% to a record high Wednesday.
• "Peloton's biggest near-term challenge in our view is keeping up with elevated demand, with Bike order-to-delivery times of ~6-7 weeks on average across the top 20 US DMAs as of our checks on 9/1," said analyst Doug Anmuth.
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Shares of Peloton surged as much as 11% Wednesday to a new intraday high of $92.50 after JPMorgan upgraded the stock and added it as a top pick.

JPMorgan on Tuesday boosted its Peloton price target to $105 from $58, now implying a roughly 18% upside for shares of the company in the next year. In addition, the firm added Peloton to its US Analyst Focus List and said it's a top pick alongside Amazon, Facebook, and Snap.

Even though Peloton has been on a tear this year — adding roughly 195% through Tuesday's close while the S&P 500 gained 9% — "we continue to like shares into earnings and believe there is significant upside potential to consensus estimates both near and long term," wrote analysts led by Doug Anmuth in the Tuesday note.

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JPMorgan also increased its Peloton estimates across the board, and now expects the company will see fourth-quarter revenue of $593 million with 1.09 million subs and EBITDA of $90 million. In addition, the firm says Peloton has further upside potential to beat earnings in the next quarter.

"Peloton's biggest near-term challenge in our view is keeping up with elevated demand, with Bike order-to-delivery times of ~6-7 weeks on average across the top 20 US DMAs as of our checks on 9/1," said Anmuth, adding that this is despite Peloton doubling its manufacturing pace since March.

"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," he said.

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While Peloton has been a stay-at-home beneficiary amid the coronavirus pandemic, JPMorgan also sees future potential. "We believe PTON is well positioned for long-term growth even after the crisis passes with only ~3% penetration of gym memberships across its four markets and multiple growth levers," said Anmuth.

Peloton is up more than 213% year to date.