Citi’s Stanley Kovler mentioned that Fitbit Inc’s FIT first Captivate Conference of 2016 focused on driving the adoption of corporate wellness.
The analyst maintains a Buy rating on the company, with a price target of $30.
Corporate Wellness
“Although Fitbit has 70 Fortune 500 customers and 1,000 total corporate customers, the corporate opportunity remains a nascent one, currently accounting for <10 percent of total revenue,” Kovler stated.
The analyst estimates that wellness represents 8–12 million incremental customer opportunity, assuming a 30–40 percent participation rate among corporate customers in the United States.
While 67 percent of companies are increasing their wellness budgets, only 2 percent of companies are disinvesting in wellness, “and wearables represent a convenient capture device for employees to track movement, drive corporate challenges, and encourage behavior chg,” Kovler said.
Rebranding
Fitbit also rebranded its wellness initiative to Fitbit Groups, while announcing new Insighter tools that can help manage corporate engagement.
The company has also been partnering with insurance firms and connecting with health coaches, Fitstar programs, Aria scale for weight management and trackers to change the course of treatment post surgery, with the use of new wearable technology, scheduled to be launched in 2H.
Kovler expects Fitbit to launch two new devices in Q4, while updating its flagship Charge HR product, as well as lower end products, setting the stage for a strong quarter.
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