Barclays Praises Fitbit's New Product Launches

Fitbit Inc FIT announced the launch of two new products - the Charge 2 and the Flex 2. The product launches reflect the company’s “continued focus on innovation,” and should support its strong growth outlook for the future, Barclays’ Matthew McClintock said in a report. He maintained an Overweight rating on Fitbit, with a price target of $24.

Impressive Product Launches

The new features in both products appear impressive and build upon the company’s most popular trackers, the Charge HR and Flex, respectively, analyst McClintock noted.

While including all the features of Charge HR, the new Charge 2 product also includes multi-sport modes, connected GPS, interval workout mode, and SmartTrack. The company has improved its heart rate tracking technology, PurePulse, “by providing a cardio fitness level based on estimated VO2 Max, a metric used by high performing athletes,” McClintock mentioned.

Another new feature added to the heart rate tracking is of guided breathing sessions. Charge 2 has a sleek design, a display that is four times larger than Charge HR and personalization options.

Apart from the features of Flex, the new Flex 2 product includes SmartTrack, water-proof and automatic swim tracking, and a color coded LED display for notifications. Flex 2 also has interchangeable bands with a removable tracker, which is 30 percent smaller than Flex. Both the Charge 2 and Flex 2 provide smart notifications for calls and text, the analyst stated.

Both products are slated to be available globally in fall this year. McClintock further commented, “Given its attractive valuation and a robust outlook for future growth supported by new product launches, we remain buyers of the shares of FIT.”

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