Fitbit’s “Buy” Rating Reaffirmed at Deutsche Bank (FIT)

This poses a very serious issue, since it indicates that the company is not able to retain its users, which might eventually lead to decreased sales as well as affect its brand value. Bank of America assumed coverage on Fitbit in a report on Monday, July 13th. Finally, Leerink Swann lifted their target cost on Fitbit from $44.00 to $79.00 and gave the company a outperform rating in a research report on Thursday. Seven investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock.

Stifel is optimistic for Fitbit having a “Buy” rating with price target of $57. The firm has a market cap of $9.17 billion and a PE ratio of 95.69. Fitbit has a 52-week low of $29.50 and a 52-week high of $51.90. On its opening day, share prices shot up a whopping 55%. Analysts will closely monitor the company, since it is its first quarter as publicly listed company.

Looking forward, Fitbit projects profit of $0.07 to $0.10 per share on revenue between $335 million and $365 million for the current quarter and earnings of $0.69 to $0.77 per share on sales of $1.6 billion to $1.7 billion for the year.

Revenue for the second quarter rose to $400.41 million from $113.57 million a year ago. The company posted revenue of $502.4 million, up 61% year-over-year, handily beating expectations of $481.3 million.

In other news, Director Jon Callaghan sold 3,133,707 shares of the company’s stock in a transaction dated Tuesday, June 23rd. Yet, the stock was hammered in the extended hours of trading on Wednesday. The trade was revealed in a legal filing with the SECURITIES AND EXCHANGE COMMISSION, which will be available through this hyperlink. Also, major shareholder Eric N. Friedman sold 1,095,817 shares of the company’s stock in a transaction dated Tuesday, June 23rd. Its shares, initially priced at $20, have gone up around 19% in the past month and closed at a near all-time high today above $51.

Such is the case for Tesla (TSLA) and Fitbit (FIT) Thursday. The Organization “s Fitbit platform combines fitness apparatus and associated wellness with computer software and services, including coaching and cellular applications, information analytics, social and motivational resources, personalized penetrations, and an internet dash through fitness strategies and interactive workouts”.