In light of checks on demand for the newest Fitbit Inc (NYSE:FIT) products and an update on The Coca-Cola Co’s (NYSE:KO) refranchising efforts, analysts weigh in on the two notable companies. While one remains cautious on the wearable device company, the other is bullish on the iconic beverage company. Let’s take a closer look:

Fitbit Inc

Although Brad Erickson of Pacific Crest remains neutral on Fitbit, he is incrementally more positive on the stock following stronger than expected demand. Recent data indicates that Fitbits two newest products, the Alta and Blaze, have already gained “solid traction” in the US. The analyst estimates that 1.3 million Blaze products were sold in the first quarter, compared to and 600K to 700K Altas.

Erickson acknowledges that the stock is “attractively priced given likely near-term upside,” and as a result has slightly increased his Q1 and Q2 estimates. However, he is remaining on the sidelines for several reasons. First, he points out that the near-term upside “does little to dispel the bear case,” which he pins at $8 per share.

Furthermore, the analyst is cautious on growing competition in the industry and concerns surrounding user trends. Lastly, the analyst warns that the European market is “likely to be a much smaller market than the United States with any signs of further deceleration in the U.S. likely foreshadowing market saturation.” Due to these long-term growth doubts, Erickson reiterated an Sector Weight rating on the company without a price target on April 12.

According to TipRanks, Erickson has a 30% success rate recommending stocks with a 22.6% average loss per rating. Eleven analysts are bullish on the wearable device company while 7 remain neutral. The average 12-month price target between these 18 analysts is $25, marking a 47% potential upside from current levels.

Erickson stat

The Coca-Cola Co

Pointing to refranchising as a catalyst for the iconic beverage brand, Nik Modi of RBC Capital reiterated an Outperform rating on the company with a $51 price target. The analyst explains, “We believe investors have over looked the implication of CocaCola’s refranchising efforts on the company’s volume trends.”

The analyst points to several reasons behind the improvement in bottling volume, starting with the Coca Cola choosing the best partners, as “not all bottlers are created equal.” Also, Modi explains that the company’s “improved execution and service levels are the biggest drivers of the improvements in the refranchised territories.” The analyst also points out that bottlers are “stepping up their local spend,” while simultaneously Coca Cola is becoming more stringent in deciding who gets distribution rights for its beverages.

Thanks to these bottling and refranchises improvements, Modi believes Coca Cola can return 20% this year and 60% in the next 5 years.

According to TipRanks, 5 analysts are bullish on Coca Cola while 2 remain neutral. The average 12-month price target between these 7 analysts is $48.86, marking a 6% potential upside from where shares last closed. Modi has a 67% success rate recommending stocks with a 2% average loss per rating.