Fitbit Shares Soar 5% Amid Analyst Support
Analysts from Citron Research have deemed Fitbit “one of the most under appreciated med-tech stories in the market” – news which sent shares soaring around 5% on Tuesday.
Citron Research claims it’s likely Fitbit shares will notch $15 this year, provided the company isn’t acquired beforehand.
The forecast is a notable ~136% increase versus the current market price.
The share spike follows the launch of Fitbit’s Ace wearable kids device, which is set to launch worldwide for ~$100.
It also comes after the ACCC mandated Fitbit to amend its consumer guarantees, citing misleading and improper representations. The local consumer watchdog received over 100 consumer complaints concerning the matter.
Fitbit’s sales have continued to slump in recent times, coupled with some commentators’ speculation that the company may sell.
In Q1, Fitbit sold 2.2 million devices, down from 3 million the year prior.
The company’s net loss widened to US$80.9 million [in the first quarter ending March 31], down from US$60.1 million the year before.
Despite this, Fitbit claims its new Versa smartwatch has shipped more than one million units since launching in mid April.