Goldman Sachs analyst Heath Terry raised the firm's price target on Peloton (PTON) to $138 from $110 and keeps a Buy rating on the shares following the company's Q4 results. The stock in premarket trading is up 12%, or $10.70, to $98.45.

Heightened demand for Peloton products and services during the COVID-19 crisis and significantly lower marketing spend drove upside to estimates, Terry tells investors in a research note.

The analyst believes Peloton represents a "significant long term opportunity" as the company is in the "earliest stages" of creating new and expanding existing categories of connected fitness products.