Mizuho 'Skeptical' of Fitbit (FIT) Offer from ABM Capital

November 10, 2016 12:49 PM EST
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Price: $7.10 -0.42%

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    4 Buy, 19 Hold, 2 Sell

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    Up: 24 | Down: 17 | New: 14
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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.

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 $8.55 yesterday.

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