Peloton can rally 12% as demand continues to surpass supply in early 2021, Bank of America says

SourceBusiness Insider
SectorFinancial Services
CountryMiddle east

Getty Images, Ezra Shaw / Staff Peloton's strong growth throughout 2020 is set to continue and lift shares to new heights, Bank of America said Tuesday.The bank's analysts lifted their price target for the company to $175 to $150, implying a 12% rally from Tuesday's close over the next 12 months.The exercise-hardware manufacturer's deliveries were delayed by 10 weeks as of January 6, signaling demand still outstripped supply at the end of the holiday season.The company's product pipeline and a new factory should expand its addressable market and bolster supply throughout the year, the bank said.Watch Peloton trade live here. The success story that was Peloton in 2020 isn't over yet, according to Bank of America. Analysts Justin Post and Joanna Zhao lifted their price target for the fitness-equipment company to $175 from $150 on Tuesday, implying a 12% climb from Tuesday's close over the next 12 months. The bank maintains a "buy" rating on the shares. Where the pandemic roiled most industries, stay-at-home orders propped up demand for Peloton's exercise hardware. Analysts boosted price targets throughout the year as order backlogs lengthened and shares kept climbing. Delivery times have since softened, but Bank of America's analysts see enough unmet demand to boost Peloton's more...