Bullish on Fitbit Inc (FIT)

Wall Street analysts have been trying to assure FitBit investors that the Apple Watch is not a threat as the company is growing at an extremely fast rate. Additionally, Fitbit prices range from $60 to $250, compared to the Apple Watch that starts at $350.

Pacific Crest analyst Brad Erickson weighed in on FitBit on September 15, initiating an Overweight rating on the stock with a $47 price target. The analyst believes investors should not be concerned about the Apple Watch taking away market share from FitBit as “the business is growing ridiculously fast.” He noted, “Apple’s current presence in fitness watches doesn’t represent a risk to Fitbit, in our view, and in the absence of a product launch from Apple, we think Fitbit’s growth can exceed expectations, with competitive concerns likely proving overdone at current levels.”

R.W. Baird analyst William Power also weighed in on Fitbit on September 15 following a meeting with Fitbit management last week, reiterating an Outperform rating on the stock with a $54 price target. The analyst acknowledged the company’s focus on “more user engagement over time.” He noted, “the company believes that new features, like heart rate monitoring, should continue to improve engagement. As the base grows, improving engagement to help drive upgrades will become more important.”

Analysts who have rated Fitbit within the past three months; 10-bullish, 5-neutral. The average 12-month price target on Fitbit is $53.69, marking a 62.5% potential upside from current levels.

Foster, 16-Sept

Fitbit - RBC Report

A new report from RBC cites the strong growth potential This company had one of the hottest initial public offerings of this year, and the quiet period just ended and Wall Street analysts are very bullish. Fitbit Inc. (FIT) is leading a worldwide movement toward healthier, more active lives by empowering people with data, inspiration and guidance to reach their goals. The Fitbit platform combines connected health and fitness devices with software and services, including an online dashboard and mobile apps, data analytics, motivational and social tools, personalized insights and virtual coaching through customized fitness plans and interactive workouts. The platform helps people become more active, exercise more, sleep better, eat smarter and manage their weight. Fitbit appeals to a large, mainstream health and fitness market by addressing these key needs with advanced technology embedded in simple-to-use products and services. The company has already sold over 20.8 million devices since inception. The RBC analysts are very positive on the stock. They think the connected health/fitness market is in the early growth stages, and the company is rapidly gaining share. The RBC team sees increasing unit and average-selling-price growth with a platform approach. They also believe that a deeper international push, combined with corporate wellness adoption, should help grow revenues an estimated 83% this year and conservatively almost 30% next year. The RBC price target of $55 is well above the consensus target of $42.25. Note that the stock closed above the consensus level Monday at $43.48. 24/7 Article