FBN Securities initiates coverage on Fitbit (NYSE: FIT) with a Outperform rating and a price target of $50. Analyst Shebly Seyrafi sees recent weakness as a buying opportunity.

"After shares rose well following its June 18, 2015 IPO (eventually reaching almost $52 on August 5), shares exhibited weakness following its FQ2 report on August 5 primarily due to concerns about slowing growth as the company guided for FQ3 revenue to decline by 9-16% Q/Q. This is in contrast to the 35% Q/Q growth rate in FQ3 2014 and the 77% Q/Q growth rate in FQ3 2013. However, we believe that as the company becomes more mature, FQ3 will be the seasonally down quarter for the company as CQ1 has strength due to New Year’s resolutions, CQ2 has strength due to Mother’s Day and Father’s Day, and CQ4 has strength due to the holidays while CQ3 basically has no such similar drivers. We still expect Y/Y growth in FQ3 2015 to more than double Y/Y, so the recent pullback is a buying opportunity for LT investors," said Seyrafi.

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Shares of Fitbit closed at $35.46 yesterday.