Piper Jaffray

In a research report released Tuesday, Piper Jaffray analyst Erinn Murphy reiterated an Overweight rating on shares of Fitbit Inc (NYSE:FIT) with a price target of $60, which represents a potential upside of 81% from where the stock is currently trading. The report follows Piper Jaffray’s fifth semi-annual Women’s Survey, which indicates that fitness band outlook is improving versus six months ago, and Fitbit is gaining share as the market leader.

Murphy observed, “Over the last year, we added questions related to preferred fitness bands, smartwatches and fitness apps. Positively, we have seen interest in the category rise. To wit, 18% of the women surveyed own a fitness band and 19% intend to purchase one in the next six months. Both of these metrics accelerated from the LDD range six months ago. In addition, 32% of women indicate they use a fitness app (new question). Fitbit showed consistency across the many datasets we reviewed and was the No. 1 preferred fitness band brand (68% share vs. 65% six months ago), was the No. 2 preferred fitness app at 18% share and was the No. 3 preferred smartwatch brand.”

The analyst continued, “While we are pleased with the uptick in fitness band category interest our survey uncovered, Fitbit’s overall mindshare grew. Of all the fitness band users, 68% said they prefer Fitbit which is up from 65% last spring. At a sizable distance, Nike and Jawbone held the No. 2 and No. 3 spot respectively, each at 6% of the total mindshare. Fitbit was also the No. 3 preferred smartwatch brand at 9% share (up from 8% share six months ago). We are starting to see the blurring of the lines between smartwatches & fitness bands in our data.”

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 -0.8% and a 42.1% success rate. Murphy has a -25.4% average return when recommending FIT, and is ranked #2841 out of 3757 analysts.

Out of the 15 analysts polled by TipRanks, 10 rate Fitbit Inc. stock a Buy, while 5 rate the stock a Hold. With a return potential of 61.6%, the stock’s consensus target price stands at $53.69.

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