Peloton Interactive Inc. climbed before the bell Wednesday after JPMorgan said shares of the connected fitness bike maker could reach US$105 by December 2021.

The stock has nearly tripled this year as Peloton’s exercise equipment benefitted from stay-at-home routines and as day trader interest picked up. “We continue to like shares into earnings and believe there is significant upside potential to consensus estimates both near and long term,” wrote analyst Doug Anmuth, who also lifted his sales and earnings estimates. He had previously expected the stock to reach US$58 by this December, a level it surpassed in July.

Peloton’s “biggest challenge,” Anmuth said, “is keeping up with elevated demand,” as a bike order-to-delivery time takes six to seven weeks on average, even after the company doubled its pace of manufacturing since March.

Shares rose 6.2 per cent to US$88.74 as of 7:40 a.m. in New York. The stock has been trading at record highs, and has mostly traded above analyst price targets since late June.

JPMorgan now expects fourth quarter revenue of US$593 million, while Bloomberg’s average estimate suggests the company may generate a little over US$575 million in the quarter.

The update follows a price target boost from Goldman Sachs analysts, who assigned a 12-month target of US$96 on the stock last week. Consensus estimates for Peloton were “far too low,” the analysts said.

Peloton reports fourth-quarter results on Sept. 10.