Analysts from Oppenheimer and Brean Capital share their two cents on wearable fitness device maker Fitbit Inc (NYSE:FIT) and wireless chip maker Qorvo Inc (NASDAQ:QRVO), following investor meetings for each. Both analysts are bullish on the stocks as one predicts stellar sales for Fitbit’s new products, while the other believes QRVO has established itself in the market and highlights new opportunities.

Fitbit Inc

Analyst Andrew Uerkwitz of Oppenheimer weighed in on FitBit following his firm’s meeting with CFO Bill Zerella, focusing on replacement cycels and operating expenses. Most notably, the analyst highlighted management’s increased commitment to on international growth. The analyst pointed to the last week’s “Fitbit-Day” in China, where the company was on Alibaba’ front page, holding a top spot in the global consumer brands that BABA promotes.

In the meeting, management expressed a long term sales and marketing target of 15% of revenues, which it has accomplished in some countries. He explains “We believe in markets where FIT has achieved brand awareness (the US and UK), OpEX is already at these targets.” The analyst also justifies recent S&M increases to further increase its international presence. He states, “We believe International spend is higher as a percentage of spend vs. 23-24% of revenues, as FIT has the opportunity to accelerate adoption in markets and take share.”

Regarding R&D, the analyst management stating the team is facing “difficult choices” managing projects and teams as the company “moves deeper into fitness, software, and digital health.” As a result, the analyst predicts the engineering team to increase from 700-1000. Based on current guidance, the analyst suspects that upgraded products will release in October, believing production of these products will start soon. Uerkwitz sees a minimum of 500 million in sales from these new products though notes that “feature adds must not complicate the user experience and mgm’t indicated it is margin-sensitive.”

The analyst specifically comments on the company’s expansion into digital health, stating they are still in the early stages of this initiative.  The analyst states the company has started to gather “healthcare expertise for strategic guidance”, with a focus on software regarding these initiatives.

Overall, the analyst believes the company is headed in the right direction, noting that increasing store footage and higher spending in advertising to prepare for the holiday season “should provide the leverage investors seek.”

Uerkwitz reiterates an Outperform rating on the stock with a $25 price target, which represents a potential upside of 71% from where the stock is currently trading.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a yearly average return of 4.1% and a 52% success rate. Uerkwitz has a -7% average return when recommending FIT, and is ranked #566 out of 3929 analysts.Andrew Uerkwitz Stats

As of this writing, out of all the analysts who have rated the stock in the past 3 months, 61% are bullish while 39% remain on the sidelines. The aerate 12-month price target for the stock is $23.14, marking a 59% upside from where shares last closed.

Qorvo Inc

Brean Capital analyst Mike Burton provided his commentary on Qorvo following an investor lunch last week. The analyst highlighted questions regarding the factors drying “better than peer q/q revenue trends” for the company, pointing to better than expected earnings, with only a 2% q/q decline in revenues compared to competitors who did “far worse” in the face of AAPL exposure and seasonal trends. The analyst boasts that QRVO has gained content in the ramping iPhone 6SE, which is “one of the key driers of the better business trends QRVO is experience versus wireless peers.”  He further explains that because 6SE is selling better than the iPhone 6 and 6S, “QRVO is seeing better trends on a relative basis.”

The analyst also cited investor concern during the meeting involving the extent of front-end demand from China as a factor of the “relative strength” demonstrated by the company in the first half of 2016.  Burton points to competitor MediaTek’s recent earnings which confirmed strong 1H demand. The analyst states, “While too early for us to have an opinion on the 2H of 2016 demand dynamics, QRVO did mention that it could see better trends out of non MediaTek phones in the 2h of 2016 to potentially offset any weakness.” The analyst also states that “in general QRVO is doing better in China and benefiting from RF content gains mid –tier smartphones”, pointing to an increasing share in Huawei phones and a potential growth in MediaTek devices.

The analyst also comments on Intel’s share in the iPhone 7. Although Qorvo did not provide much detail on this, the analyst does not believe investors have a reason to worry, pointing to a favorable opportunity for Qorvo. He explains, “we believe QRVO has an opportunity to gain content and design wins with Intel-based iPhones compared to the competition.” The analyst notes that Qorvo have worked together in the past which could increase the company’s chances of RF gains and design success.

Burton reiterated a Buy rating on QRVO, with a $62 price target, which implies upside of about 22% from the current price.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike Burton has a yearly average return of 9.9% and a 55% success rate. Burton has a -28% average return when recommending QRVO, and is ranked #231 out of 3929 analysts.Mike Burton Stats

As of this writing, out of all the analysts who have rated the stock in the last 3 months, 75% are bullish while 25% remain on the sidelines. The average 12-month price target for the stock is $56.50, marking an 11% upside from where shares last closed.