Wedbush Downgrades Fitbit (FIT) to Neutral
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Wedbush downgraded Fitbit (NYSE: FIT) from Outperform to Neutral with a price target of $10.00 (from $18.00) following weak results amid demand softness and limited long-term visibility.
Analyst Nick McKay commented, "We are downgrading shares of Fitbit to NEUTRAL from OUTPERFORM, and lowering our 12-month price target to $10 from $18 to reflect lower-than-expected demand for its products at present and limited visibility into its long-term financial targets and product roadmap. Our prior expectation for significant top- and bottom-line growth in 2017 appears to have been overly optimistic, and we think it is more prudent to take a wait-and-see approach to initial FY:17 guidance and long-term demand trends. Our revised PT reflects 0.7x our 2017 revenue estimate, down from 1.1x our prior estimate, which we believe is warranted given the issues that Fitbit faces ahead of the holidays."
Shares of Fitbit closed at $12.81 yesterday.
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