Fitbit (FIT) Receives a Buy from Oppenheimer

By Jason Carr

Oppenheimer analyst Andrew Uerkwitz maintained a Buy rating on Fitbit (NYSE: FIT) yesterday and set a price target of $8. The company’s shares closed yesterday at $4.73, close to its 52-week low of $4.23.

Uerkwitz said:

“What we thought was a runner’s high in 2016/2017 turned out to be the wall. The fitness trackers euphoria came to an abrupt end. Since, Fitbit refueled with a dual strategy. First the company focused on other hardware, namely smartwatches, and second, focused on building a service business related to digital health. This second leg is what we have been and continue to be most excited about. It’s been a slog. However, with trackers finding a base and smartwatches gaining traction (internally now 49% of revs and 2nd in global market share), the hardware business seems to have found its footing and we could see growth in 2019. More important, as digital health becomes material, investors should expect more detail on monetization and user strategy.”

According to TipRanks.com, Uerkwitz is a 5-star analyst with an average return of 20.4% and a 58.5% success rate. Uerkwitz covers the Consumer Goods sector, focusing on stocks such as Axon Enterprise Inc, Himax Technologies, and Turtle Beach Corp.

The word on The Street in general, suggests a Hold analyst consensus rating for Fitbit with a $6.53 average price target.

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Based on Fitbit’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $118 million. In comparison, last year the company had a GAAP net loss of $113 million.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock.

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Fitbit, Inc. engages in the development of wearable device which tracks data of an individual’s health. It offers wrist-based and clippable devices, which can track daily steps, calories burned, distance traveled, and active minutes, and display real-time feedback to encourage users to become more active in their daily lives.