The company has shown strong fundamentals for the past few quarters and received exceptional response from the customers
Fitbit Inc. (NYSE:FIT) is all set to post Q1 earnings with the call scheduled to be held on May 04, after the close of market proceedings. The San Francisco based company became the industry leader of fitness gadgets and related accessories following its founding in 2007. The company was co-founded by Eric Friedman and James Park, who currently serves as the CEO of the company. The company maintained a quiet existence for the most part until the launch of Blaze which was received exceptionally well and can be deemed the primary reason behind the company’s recent success.
Betty Chen, analyst at Mizuho Securities remains positive on the stock as trends continue to improve with more and more units being sold. The company has also established itself in other geographical regions apart from North America such as Asia, Europe and Africa. The analyst expects the company to beat the Street’s earnings estimate and post a solid quarterly earnings report and compliment it with an equally strong guidance. Furthermore, the analyst still sees upside potential in the stock despite the fact that the stock has gained 46% in the last 3 months.
RBC Capital’s recently held survey points towards a dramatic rise in Fitbit gadgets ownership. The survey also sees a sharp rise in the willingness to purchase newer products with added features even with higher ASPs. The upgrade cycle also remain relatively short with people willing to upgrade more frequently the long term story for FIT remains incredibly positive. The company can also manipulate prices in order to gain margins as the customer base is relatively inelastic. The analyst maintained a Buy rating with a price target of $20. The stock is currently traded at a price of $18.06.