Leerink Partners analyst Steven Wardell came out to defend Fitbit (NYSE: FIT) which is down ~7% over the last two days mostly in reaction to the launch of Microsoft’s Band 2 on Tuesday.

"While we recognize the competitive environment is intensifying for Fitbit, we believe Fitbit will maintain its market leadership position and the reaction to Microsoft's updated wearable is overdone," Wardell said. "We see Fitbit maintaining strong unit growth in the middle tier of activity trackers."

They believe the Microsoft Band will not make substantial market-share inroads against Fitbit due to Fitbit's "continued strong positioning in the industry and competitive moat that it has built, including a strong brand that positions it well in the mass fitness market and a social network among users that serves as a compelling reason to choose Fitbit products and stick with them."

The firm maintained an Outperform rating and price target of $79 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 $35.25 yesterday.