Fitbit is No. 1 Teen Fitness Brand, New Data Shows

• Fitbit Inc FIT shares have lost 17 percent in the last three months, after hitting a high of $51.64 on August 5.
• Piper Jaffray’s Erinn E. Murphy maintained an Overweight rating on the company, with a price target of $60.
• Teen survey revealed positive results for the fitness band category and for Fitbit, Murphy noted.

Piper Jaffray’s survey of teens revealed that 13 percent of the respondents owned a fitness band, while 18 percent had plans of buying one in the next six months. “Teen purchase intent picked up 300 bps from 15% last Spring,” analyst Erinn Murphy said.

Fitbit is the leading brand among teens, with a share of 53 percent. Another 18 percent of the respondents indicates that they used a fitness app with Fitbit as the #3 platform, which marks an improvement from #4 recorded six months back. Murphy considers Fitbit as a “top-of-mind brand during the holidays.”

“Since mid-May, we have been tracking Fitbit's ranking and pricing on Amazon. Our findings show that pricing has remained stable except for what we believe to be seasonal discounting around Labor Day,” the analyst wrote.

Referring to rankings, Murphy mentioned that the Fitbit Charge and Flex have consistently been in the top five ranks. The average basket pricing was at $130 last week, representing a marginal improvement over the $126 multi-month average.

Murphy commented, “We continue to see strong traction for the brand at Kohl's and at Macy's which was the most recent roll out.” There is increased interest in the fitness band category and Fitbit is at #1 position.