Fitbit (FIT) a Broken Stock, Not Broken Story - Oppenheimer
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Oppenheimer analyst Andrew Uerkwitz slashed his price target on Fitbit (NYSE: FIT) to $12.00 (from $25.00) but maintained a Outperform rating following weak results, outlook.
Uerkwitz commented, "Fitbit disappointed....again. With the large short interest, many were expecting it, as the company has a history of delivering bad news (even when top-line growth exceeds even the most ambitious estimates). This quarter, revenue growth missed. The company lowered FY guidance by $200M and EPS is now expected to be ~$0.57 (down 47% y/y). We don't expect the stock to work until 1) mgmt. starts executing and 2) shows signs of leveraging its vast amount of data, corporate relationships, and social network. But there is good news: FIT isn't losing share, it has a tremendous amount of unlocked value, it's still generating cash, and after any significant selloff, valuation tends to look attractive (based on cash and IP). Broken stock, not broken story."
Shares of Fitbit closed at $12.81 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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