Mizuho Securities Reiterates Buy on Fitbit (FIT) Following Product Launch

September 1, 2016 3:45 PM EDT
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Mizuho Securities reiterated a Buy rating and $20.00 price target on Fitbit (NYSE: FIT) following the company's announced product launch. Both products are currently available for pre-order and will be shipping globally in the Fall. Mizuho is maintaining its 3Q EPS estimate of $0.18, in-line with guidance for $0.17-0.19.

Analyst Betty Chen commented, "Following the announcement this Monday, 8/29, we highlight early consumer and media reviews for the new products are favorable. The updated Charge 2 ($149.95), replaces the Charge HR, and features an enhanced exercise experience with heart rate tracking, new health and fitness tools, notifications, and a larger display with interchangeable bands. The Flex 2 ($99.95) is the company’s first water-proof fitness band with a removable tracker that can be integrated into traditional bands as well as fashionable bangles or pendants. Both products are currently available for pre-order and will be shipping globally in the Fall. Combined with the Alta and Blaze introductions earlier this year, the launch of these two new devices outpaces the 3 launches in 2015 (Charge, Charge HR, and Surge). FIT also cited the margin profile of new products slated for 2016 are consistent with prior guidance. Additionally, we believe the rollout of new customizable accessories and wristbands should provide a healthy, accretive margin."

For an analyst ratings summary and ratings history on Fitbit click here. For more ratings news on Fitbit click here.

Shares of Fitbit closed at $15.48 yesterday.

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