Oppenheimer Recommends Buying Fitbit (FIT) on Weakness
Oppenheimer analyst Andrew Uerkwitz reiterated an Outperform rating and $25 price target on Fitbit (NYSE: FIT), saying they would be buyers on weakness following the company's Q4 report and lower Q1 guidance.
Uerkwitz commented, "When we initiated on FIT three weeks ago (2/1/16 at $16.60, see note here) we argued that Fitbit was best positioned to be both a hardware and software provider for two fast growing markets: digital health and next generation fitness. On Fitbit's December quarter earnings call, we heard many things we liked: 1) management spending most of the prepared comments discussing this opportunity including increased investment in 2016; and 2) much improved engagement statistics showing the value of more features. We recognize the poor March guidance makes this a show-me story as management must now deliver a back-half loaded year, but we are in it for the long view. We are buyers on weakness."
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Shares of Fitbit closed at $16.52 yesterday.