SunTrust Robinson Humphrey Remains Bullish as Fitbit (FIT) Reports 1Q Beat
SunTrust Robinson Humphrey reiterated a Buy rating and $20.00 price target on Fitbit (NYSE: FIT) following the company's 1Q earnings report. FIT reported revenue of $505M ahead of $420-$440M guidance and the Street's $446M. FIT guided to higher 2Q revenue but lower margins on aggressive investment in R&D and marketing.
Analyst Robert Peck commented, "1Q beat; we think raised FY outlook could be conservative. We expect 2016 could be a tale of two halves, with aggressive spending in 1H on R&D and Mktg, followed by a seasonally slower 3Q ahead of new product launches, and a stellar 4Q holiday season with substantial operating leverage. We believe FIT can leverage its brand equity, strong product portfolio, superior R&D and distribution, and commanding market share to transform into an endto-end health & wellness solutions provider to enterprises and health insurers. Shares trading at a discount to peers; Maintain Buy/$20 PT."
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Shares of Fitbit closed at $17.10 yesterday.