The promotion: a Chase Sapphire Reserve card that will receive $120 in statement credits toward eligible Peloton memberships.
"First, the targeted Chase cards have an affluent target market (Chase Sapphire Reserve annual fees are $550), which we think overlaps well with the Peloton target customer base," KeyBanc analyst Edward Yruma said.
"Further, we believe the card has strong penetration with millennials, a growth demographic for Peloton. Finally, the promotion renders the digital subscription largely free, which should help both retention and drive greater connected fitness device sales."
Cardmembers who sign up with have access to thousands of on-demand or live fitness classes from Peloton instructors.
KeyBanc maintained its overweight rating and $160 price target on the shares of the New York fitness-equipment and -classes provider.
Last week, Peloton was sued by Icon Health & Fitness, maker of the NordicTrack bike, for patent infringement, the latest salvo in the ongoing legal battle between the two companies.
Icon filed a lawsuit in a Delaware district court based on two features that Peloton added to an exercise bike released in September, Bloomberg reported: a swiveling touchscreen and the bike's ability to automatically change resistance levels during classes.
The company also said it would recall some faulty clip-in bike pedals because they can break during use.
In a statement the New York company said it recalled "out-of-warranty PR70P clip-in pedals due to risk of axle breaks."
"These pedals can break unexpectedly during use, which may result in injury," Peloton said.