Fitbit (FIT) Pullback Creates Compelling Entry - Mizuho
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Mizuho Securities analyst Betty Chen sees today's pullback in Fitbit (NYSE: FIT) providing a compelling entry point.
Chen commented, "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."
The firm maintained a Buy rating and price target of $20.
Shares of Fitbit closed at $16.70 yesterday.
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