Leerink Doesn't See Security Issues Affecting Fitbit (FIT) Sales

Leerink is out in defense of Fitbit (NYSE: FIT) following news that the company's products may be vulnerable to security attacks.

The company called the report false and said it believes Fitbit devices cannot be used to infect users with malware. This morning CBS News published an interview with Fortinet security researcher Axelle Apvrille that repeated yesterday's claims. We believe that this news won't change customers' willingness to use the product, but the onus is on the company to demonstrate a commitment to protecting its customers’ security and information. The stock may face headline pressure today, and we are doing more work on this topic.

The firm noted that issues first surfaced last March. Leerink also said, We don’t think that this news changes customers’ willingness to purchase, own or use the product, but the onus is on the company to demonstrate a commitment to protecting its customers’ security and information.

Leerink has Fitbit at Outperform with a price target of $79.

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

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