In a research report released Monday, Piper Jaffray analyst Erinn Murphy initiated coverage on shares of Fitbit Inc (NYSE:FIT) with an Overweight rating and a $52 price target, which represents a potential upside of 23.5% from where the stock is currently trading.
Murphy wrote, “Fitbit is an authentic consumer brand that is leading the wearable technology space and is a brand that has become synonymous with the category. While there is a rising tide of competition, we believe the two most attractive characteristics of the company are: 1) the strength of the brand; and 2) the accessibility of the brand across multiple ages, incomes and geographies. With superior growth metrics to-date and the significant potential for global growth and new product introduction, we believe FIT has the characteristics to trade similar to high-growth, consumer-facing brands such as UA, GPRO and LNKD. We believe our estimates are conservative and would expects earnings to grow into the multiple. Our $52 PT assumes shares trade at 70x our FY16 EPS.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Erinn Murphy has a total average return of 3.8% and a 60.5% success rate. Murphy is ranked #1149 out of 3694 analysts.