Mizuho Pounds the Table on Fitbit Inc (FIT)
Mizuho analyst Betty Chen was out pounding the table on Fitbit Inc (NYSE:FIT) Thursday, reiterating a Buy rating and price target of $20, which implies an upside of 32% from current levels.
Chen noted, “Despite concerns regarding Charge 2 sales, our checks suggest initial sell-throughs remain strong with favorable reviews. As such, we believe the pull-back today is unwarranted, especially as 3Q guidance conservatively assumes minimal unit sales of the new devices that should compete well and serve as key Holiday ’16/Spring ‘17 catalysts. Following our recent meetings with FIT’s CFO in NYC on 9/13-9/14, we continue to believe in the company’s LT opportunity to maintain dominant share within the growing global market for wearables while pursuing opportunities in the healthcare industry over time.”
However, Fitbit shares are currently falling nearly 9% after Pacific Crest analyst Brad Erickson downgraded the stock to Underweight from Neutral.
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 -2.4% and a 47% success rate. Chen has a -2.8% average return when recommending FIT, and is ranked #3458 out of 4181 analysts.
Out of the 17 analysts polled by TipRanks (in the past 3 months), 11 rate Fitbit stock a Buy, 5 rate the stock a Hold and 1 recommends a Sell. With a return potential of 39%, the stock’s consensus target price stands at $21.31.