Mizuho 'Skeptical' of Fitbit (FIT) Offer from ABM Capital
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Mizuho Securities analyst Betty Chen weighed in on Fitbit (NYSE: FIT) amid news of ABM Capital filing a tender offer for $12.50/share. The firm said they skeptical of a deal consummating given legitimacy concerns around ABM Capital.
Additionally, Chen said FIT's founders and early investors may be unwilling to part with the company given their view of: 1) FIT’s strong market leading position in wearables, 2) domestic and International expansion opportunities, and 3) growing corporate wellness business. We maintain a Neutral rating as we weigh indications of slowing category growth amidst increased competition, production issues, and earnings pressure from heightened investments that outpace sales.
The firm maintained a Neutral rating and price target of $9 on FIT.
Shares of Fitbit closed at $8.55 yesterday.
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