Fitbit (FIT) PT Cut to $20 by SunTrust's Peck; 'Buy' Maintained
SunTrust Robinson Humphrey analyst Robert Peck lowered his price target on Fitbit (NYSE: FIT to $20.00 (from $25.00) but maintained a Buy rating following solid Q4 results but lower Q1 guidance.
Peck commented, "Although 4Q results beat Street ests, and 2016 outlook was in line, FIT shares trading pre-market at ~$14 vs. $16.52 close on weaker 1Q'16 guide. While investments may be lumpy as FIT focuses on growth of the nascent market globally, we continue to believe there is a significant long-term opportunity for the company to deliver health/fitness solutions to consumers as well as enterprises and health insurers. We maintain Buy rating, but reduce PT to $20 from $25 to reflect market multiples and higher near-term investment."
The firm's 2016 Revenue/EBITDA estimates go to $2.45B/$442M from $2.39B/$476M, respectively.
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Shares of Fitbit closed at $16.52 yesterday.