Analysts from FBR and and Piper Jaffray weigh in on tech giant Apple Inc. (NASDAQ:AAPL) and fitness watch company Fitbit Inc (NYSE:FIT). While one analyst expresses concern about Apple’s live-TV delay, the other is bullish on Fitbit due to positive survey results.
Daniel Ives, analyst at FBR, recently commented on AAPL following news that the company is delaying its streaming TV initiative. The analyst cites numerous reports from sources such as Bloomberg and Reuters that claim the company is holding off on its live-streaming TV service, expected in the first half of 2016. He also notes that CBS CEO Les Moonves reiterated the hold on Apple’s live TV plans “despite intense negotiations with TV programmers.” Ives believes this development adds to the many challenges the company faced with offering a wireless streaming TV service that could further propel it into the content industry.
The analyst believes it is important for Apple to offer its own content and wireless streaming TV service, especially “given the changing dynamics in the consumer media landscape” as well as continuing to partner with programmers through its App store, like it has been doing. Ives also notes that the company’s streaming plans came when the company captured the streaming music industry in addition to the enhanced Apple TV. Ives states that the delay in the release stems from negotiation and price point issues, forcing the company to “walk away from the negotiation table for now on this potentially game-changing endeavor.”
According to TipRanks’ statistics, Daniel Ives has a 58% success rate recommending stocks with an average return of 5.2% per recommendation. Out of the 34 analysts who have rated AAPL in the last 3 months, 26 gave a Buy rating while 8 remain on the sidelines. The average 12-month price target for the stock is $149.36, marking a 29% upside from where shares last closed.
Analyst Erinn Murphy of Piper Jaffray recently weighed in on fitness watch maker FitBit following positive results from her firm’s survey. The survey collected responses from 221 runners across 16 states. Following the results, the analyst states that her “overall findings for the fitness tracker category and specific to Fitbit were positive,” citing y/y increases in fitness band ownership, fitness app usage, and watch usage while running.
Relative to its peers, Fitbit “continues to capture incremental brand equity” as 73% of survey participants indicated that Fitbit is their most preferred fitness band. Similarly, 73% of those surveyed wear the product daily, a 5% increase from last year. Also, the company is ranked #5 for its fitness app. In addition to the survey, Murphy met with company senior management and examined Black Friday numbers, further promoting her bullish sentiment on the company.
She concludes, “On balance, we are increasingly bullish on Fitbit following our meeting with management, today’s survey and recent channel checks showing pricing is holding up post Black Friday in what has been an overly promotional holiday season.” Murphy reiterates her Overweight rating and price target of $60
According to TipRanks’ statistics, out of the 11 analysts who have rated Fitbit in the last 3 months, 9 gave a Buy rating while 2 remain on the sidelines. The average 12-month price target is $52.64, marking a 68% upside from where shares last closed.