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Bob Peck Offers 10 Reasons To Be Positive On Fitbit Ahead Of Q4 Results, CES

Bob Peck Offers 10 Reasons To Be Positive On Fitbit Ahead Of Q4 Results, CES - Fitbit Inc NYSE:FIT
  • Robert S. Peck of SunTrust Robinson Humphrey has reiterated a Buy rating on the company, with a price target of $48.
  • Peck expects the company to report strong results for Q4, based on SunTrust’s consumer intent trend analysis, comments by retailers during the quarter, app store rankings and SunTrust’s regression analysis.

Bob Peck believes that there are 10 reasons to be positive on the stock, including the attractive valuation, expectations of strong Q4 results and conservation consensus forecasts for 4Q15 and 2016.

Fitbit is also expected to make new product announcements at the CES during this week.

During Q4, retailers offered significant discounts on Fitbit products to attract customers to their sites/stores, while key retailers specifically mentioned Fitbit as a standout during the season, while positively mentioning wearables.

According to the SunTrust report, “Fitbit remained the most downloaded app within the category on both the iOS and Android app stores. More importantly, Fitbit's ranking has improved considerably in the past year on the Android platform, from #4 in 1Q'14 to #1 in 3Q'15.”

In fact, CNBC reported that Fitbit was the most downloaded free app on the iOS platform on Christmas Day.

“Our analysis of the consumer interest graph suggests Fitbit not only held its lead against competitors like Jawbone (private), but also managed to increase it as the Holiday Season picked up,” the report added.

Given that the consensus revenue estimates suggest a significant deceleration in 4Q15 and 2016, against a backdrop of positive retailer reports and app downloads, Peck believes that there could be upside surprise when the company reports its 4Q15 results.

DateFirmActionFromTo
Jun 2016WedbushInitiates Coverage onOutperform
Apr 2016Cowen & CompanyMaintainsMarket Perform
Mar 2016Longbow ResearchInitiates Coverage onBuy

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