Fitbit Inc (NYSE:FIT) expanded its product portfolio with this week’s launch of two improved trackers. The updated Charge 2 and Flex 2 will replace the older Charge HR and Flex, respectively. Analyst Betty Chen of Mizuho and analyst Matthew McClintock of Barclays weighed in on the stock, reiterating positive rating on shares of FIT.
Chen maintained a Buy rating on FIT with a price target of $20.00. Chen cites a number of reasons for remaining bullish on the company’s prospects. First, the analyst notes that the margin profile of FIT’s new products in 2016 is consistent with the company’s prior forecast. Second, Chen says that the rollout of customizable accessories for FIT’s trackers will boost margins. Third, she commented that, “Combined with the Alta and Blaze introductions earlier this year, the launch of these two new devices outpaces the 3 launches in 2015 (Charge, Charge HR, and Surge).
Mizuho sees FIT posting 3Q EPS of $0.18, compared to the company’s internal guidance of $0.17 to $0.19.
In addition, McClintock reiterated an Overweight rating on FIT, with a price target of $24.
McClintock notes that the product launches demonstrate FIT’s continued focus on innovation, which supports a strong growth outlook and offering product differentiation.
McClintock also excited about how the company has increased features in the new products. One of the new features in the products is guided breathing session, noted McClintock.
FIT’s Charge 2 and Flex 2 will be available starting this fall, going for $150 and $100, respectively.