Market Overview

1 Thing Pushing FitBit Stock Up

1 Thing Pushing FitBit Stock Up
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  • Shares of Fitbit, Inc. (NYSE: FIT) have risen 25.94 percent since June, from a low of 29.68 on June 18.
  • Morgan Stanley’s Katy L. Huberty has maintained an Overweight rating on the company, with a price target of $58.
  • Huberty believes that Fitbit continues to be the market leader and has been ramping its enterprise sales force to “capture the enterprise opportunity.”

Analyst Katy Huberty mentioned, “We have increasing confidence in our bull case for FIT and the wearable market, as more employers are incorporating and subsidizing fitness trackers as part of their health programs.”

Although 30 of the Fortune 500 companies are Fitbit’s customers, Huberty believes that the enterprise opportunity is still in a nascent stage, with Morgan Stanley's CIO survey pointing toward robust growth in enterprise subsidy programs in 2016.

According to the Morgan Stanley report, “Gartner considers fitness tracker programs a strategic priority for enterprises. It is advising employers to gain employee permission to share fitness data with wellness providers in order to lower healthcare costs.”

Gartner predicts that 2 million employees would be required to wear fitness and health tracking devices as one of the conditions of employment by 2018.

“We forecast 1B wearable shipments by 2020 in our bull case, nearly doubling the 530M estimate in our base case. The upside comes from subsidies from employers, the healthcare industry, and other institutions that are willing to pay to gain access to user data,” Huberty said.

Latest Ratings for FIT

Sep 2016Pacific CrestDowngradesSector WeightUnderweight
Aug 2016Morgan StanleyMaintainsOverweight
Aug 2016Deutsche BankMaintainsBuy

View More Analyst Ratings for FIT
View the Latest Analyst Ratings

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