SunTrust's Bob Peck Offers 10 Reasons To Be Positive On Fitbit Ahead Of Q4 Results, CES

• Shares of Fitbit Inc FIT have declined 29.76 percent over the past six months, falling close to their 52 week low on November 24, at $26.87.
• Robert S. Peck of SunTrust Robinson Humphrey has reiterated a Buy rating on the company, with a price target of $48.
• Peck expects the company to report strong results for 4Q, based on SunTrust’s consumer intent trend analysis, comments by retailers during the quarter, app store rankings and SunTrust’s regression analysis.

Analysis Robert Peck believes that there are 10 reasons to be positive on the stock, including the attractive valuation, expectations of strong 4Q results and conservation consensus forecasts for 4Q15 and 2016.

Fitbit is also expected to make new product announcements at the CES during the week of January 4.

During 4Q, retailers offered significant discounts on Fitbit products to attract customers to their sites/stores, while key retailers specifically mentioned Fitbit as a standout during the season, while positively mentioning wearables.

According to the SunTrust report, “Fitbit remained the most downloaded app within the category on both the iOS and Android app stores. More importantly, Fitbit's ranking has improved considerably in the past year on the Android platform, from #4 in 1Q'14 to #1 in 3Q'15.”

In fact, CNBC reported that Fitbit was the most downloaded free app on the iOS platform on Christmas Day.

“Our analysis of the consumer interest graph suggests Fitbit not only held its lead against competitors like Jawbone (private), but also managed to increase it as the Holiday Season picked up,” the report added.

Given that the consensus revenue estimates suggest a significant deceleration in 4Q15 and 2016, against a backdrop of positive retailer reports and app downloads, Peck believes that there could be upside surprise when the company reports its 4Q15 results.