Mizuho analyst Betty Chen was out today with a research note on Fitbit Inc (NYSE:FIT), after the wearable fitness device giant announced that it has acquired specific assets of smartwatch maker Pebble, including key personnel and intellectual property related to software and firmware development. At this point, Chen remains neutral on the stock with a $9.00 price target, which implies an upside of 12% from current levels.

Chen noted, “We believe today’s announcements demonstrates progress by FIT management in maintaining its lead in wearables technology while tapping into the under-served digital health arena. While we believe Corporate Wellness is currently less than 10% of FIT’s sales, we believe the longer-term benefits of being able to have a centralized viewpoint (patients, physicians, and healthcare providers) into activity level, sleep, VO2 max, heart rate and monitoring of glucose, seizures and other healthcare areas could be a meaningful opportunity. We believe the company’s OS-agnostic approach and vast database of users would make FIT a natural partner.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Betty Chen has a yearly average return of -4.7% and a 42% success rate. Chen has a -49.1% average return when recommending FIT, and is ranked #3822 out of 4262 analysts.

Out of the 24 analysts polled by TipRanks, 5 rate Fitbit stock a Buy, 17 rate the stock a Hold and 2 recommend a Sell. With a return potential of 64%, the stock’s consensus target price stands at $13.20.

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