Oppenheimer analyst Andrew Uerkwitz provided his two cents on Fitbit Inc (NYSE:FIT), after hosting Fitbit VP, Investor Relations, Brad Samson at Oppenheimer’s 19th annual Technology, Internet & Communications Conference in Boston. Uerkwitz rates Fitbit an Outperform with a price target of $25, which implies an upside of 68% from current levels.
Uerkwitz wrote, “Mr. Samson provided some color on product strategy. He pointed investors to the Alta, an improved mix between style (personalized designs) and user engagement (auto activity recognition/basic smart watch functionality) at competitive prices. Roadmap could surprise investors in the way new sensors could be integrated.” Furthermore, “Mr. Samson addressed the common argument that “anyone can make a wearable tracker with off-the-shelf mass market sensors” by making the distinction between “barriers to entry” and “barriers to success.” He said the time and cost to develop and build a brand, distribution, and a intuitive/easy-to-use/ compelling software experience should not be underestimated.”
“We continue to like FIT’s market-leading position in a growing wearables space, attractive valuation, room for international growth, and a cash-loaded balance sheet.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a yearly average return of 7.4% and a 54.7% success rate. Uerkwitz has a 9.2% average return when recommending FIT, and is ranked #399 out of 4110 analysts.
Out of the 23 analysts polled by TipRanks, 13 rate Fitbit stock a Buy, while 10 rate the stock a Hold. With a return potential of 41%, the stock’s consensus target price stands at $21.13.