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Fitbit Fatigue: Analyst Sees 50% More Downside

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Fitbit Fatigue: Analyst Sees 50% More Downside
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In less than a year, Fitbit has gone from the darling of the wearable trend, to a company struggling to keep investors excited for the future. After the market closed Monday afternoon, Fitbit Inc (NYSE: FIT) reported both top and bottom line beats over analyst estimates.

However, the Street was very concerned with first quarter guidance, which came in well below analyst projections.

Fitbit sees Q1 adjusted EPS ranging from $0.00-$0.02, much lower than the $0.24 analysts anticipated. Revenue guidance for Q1 did not fare any better, with the company anticipating $420-$440 million against the $484 million analysts predicted.

Benzinga reached out to long-time Fitbit bear, Global Equities Research Trip Chowdhry, who said that Fitbit's IPO "marks the peak" of the company and investors should "take profits."

Regarding the disappointing Q1 guidance, Chowdhry said that he believes "[Fitbit] has 50% more downside risk" from current share price. Shares of Fitbit currently trade at $13.80, which implies that he sees shares sinking as low as approximately $7.00.

Fitbit had its initial public offering June 18, 2015, where shares were originally priced at $20 and eventually opened at $30.40 per share.

Latest Ratings for FIT

DateFirmActionFromTo
Apr 2017BenchmarkInitiates Coverage OnBuy
Jan 2017CitigroupDowngradesNeutralSell
Dec 2016Deutsche BankDowngradesBuyHold

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