Fitbit (FIT) IPO Will be the Peak, Global Equities' Chowdhry Says

Contrary to an earlier positive opinion on upcoming IPO Fitbit (NYSE: FIT), Global Equities Research analyst Trip Chowdhry is telling clients to avoid the stock, saying the IPO is the peak.

Chowdhry said secular growth trends are absent on FIT and fundamental investors may want to avoid FIT Stock. He highlighted:

• Industry can be categorized into "Exclusive" and "Commodity" Segments
• Apple owns the "Exclusive" premium segment; while Fitbit participates in the "Commodity" segment, which is brutally competitive
• Fitbit is directly competing with Xiaomi's $15 Band - Pricing for Fitbit devices (Priced from $99 to $250) is going to collapse
• Fitbit IPO signals the peak for the Company - Secular growth Trends are missing - Fundamental investors should avoid Fitbit Stock
• Fair value of Fitbit stock may be 2x Revenues at best, as Xiaomi's $15 device is going to be a persistent problem for Fitbit

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