Fitbit (FIT): Product Launches Should Translate Into A Strong Year End - Wedbush
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Wedbush analyst, Nick McKay, reiterated his Outperform rating on shares of Fitbit (NYSE: FIT) after the company formally unveiled its two newest fitness trackers, the Charge 2 and the Flex 2.
The analyst believes that the Charge 2’s most important innovations relate to its screen size (four times larger than its predecessor) and the PurePulse heart rate tracking technology, with Flex 2’s form factor (30% smaller than its predecessor) and swim-proofing likely to be its two biggest selling points. Charge 2 will retail at $149.95, with Flex 2 at $99.95. Charge 2 is replacing and improving upon the top-selling fitness tracker and wearable in the U.S. in Q2 according to NPD data.
The analyst stated "Fitbit shares are currently undervalued given a long runway remaining from an installed base perspective, as well as relatively untapped accessory, co-branding, and corporate wellness opportunities. We believe that these positive factors outweigh the risk of commoditization over the next few years and questions about the pace of technological innovation."
No change to the price target of $18.
Shares of Fitbit closed at $14.94 yesterday.
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