Fitbit Inc (NYSE:FIT) is getting more attention from investors, as well as, analysts. The company came with its IPO only less than a month ago with $20 a share. The stock has not only doubled since its debut in the middle of June but also has the potential to grow further. That has been confirmed by different brokerages as the research firm sees significant growth in wearable shipments.
Brokerage’s Rating
R.W. Baird analyst, William Power joined RBC Capital Markets, and Leerink, to initiate coverage on the company’s shares. However, Baird’s analyst rated Fitbit Inc (NYSE:FIT) shares as Outperform. The brokerage also appeared to be more impressed with the company’s product as it kept a price target of $52. RBC Capital Market and Leerink have a price objective of $45 and $44 respectively on the company’s shares.
Baird’s said that the company enjoys the brand leadership among the robust secular fitness trends. The analyst was also thoroughly impressed with the continuous momentum witnessed in fitness bracelets sales. Power also quoted IDC’s data to support his point of view that the global wearable shipments would grow to 45.7 million in the current year from 21.0 million recorded last year. That would also more than double to 126.1 million units by the turn of the year 2019.
Market Share
Fitbit Inc (NYSE:FIT) enjoys a market share of 85% in the Americas’ fitness band market in the first quarter. At the global level, the company commands nearly 34% market share. The analyst liked the share because of the expansion of the product line also.
The brokerage expects the fitness tracker to deliver $1.4 billion revenue and an adjusted gross margin of 48.7% in the current year. Power expects earnings to be 69 cents a share for the year 2015. That might suggests that it was modestly lower than the Street consensus of 71 cents a share and $1.42 billion of revenue. He expects Fitbit Inc (NYSE:FIT) to earn 84 cents a share and generate revenue of $1.87 billion next year. The adjusted gross margin is estimated to be 49.1%. The Street consensus called for earnings of 89 cents a share and $1.84 billion revenue.
Fitbit, Inc. (Fitbit) is a provider of health and fitness products. The Fitbit platform combines connected health and fitness devices with software and services, including an online dashboard and mobile applications, data analytics, motivational and social tools, personalized insights, and virtual coaching through fitness plans and interactive workouts. The Company offers a number of fitness products, including Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Charge HR, Fitbit Surge and Aria. These wrist-based and clippable devices automatically track users’ daily steps, calories burned, distance traveled, floors climbed, and active minutes and display real-time feedback to encourage them to become more active in their daily lives. The Company’s trackers also measure sleep duration and quality, and its products track heart rate and Global Positioning System (GPS)-based information, such as speed, distance and exercise routes. The Company’s devices also feature deeper integration with smartphones, such as the ability to receive call and text notifications and control music. In addition, the Company offers a Wi-Fi connected scale that records weight, body fat, and body mass index, or BMI.
Fitbit Zip is the Company’s entry-level wireless activity tracker that allows users to track daily activity statistics, such as steps, distance, calories burned and active minutes. Fitbit One is its clippable wireless tracker that tracks stairs climbed and sleep in addition to daily steps, distance, calories burned and active minutes. Fitbit Flex is the Company’s wristband-style tracker that tracks steps, distance, calories burned, active minutes and sleep. Fitbit Charge is a wireless activity and sleep wristband that tracks steps, distance, calories burned, active minutes, floors climbed and sleep. Fitbit Charge HR is a wireless heart rate and activity wristband that has the features available on the Fitbit Charge and also includes its PurePulse heart rate tracking technology. Fitbit Surge is the Company’s fitness super watch that combines features of a GPS watch, heart rate tracker, activity tracker and smartwatch. Aria is its Wi-Fi connected scale that tracks weight, body fat percentage and BMI. Fitbit Accessories include colored bands for Fitbit Flex, colored clips for Fitbit One and Fitbit Zip, device charging cables, wireless synchronize dongles, band clasps, sleep bands, and Fitbit apparel. In addition, its partner Tory Burch offers a pendant and wristband accessory collection for Fitbit Flex.
The Company’s platform also includes its online dashboard and mobile applications, which wirelessly and automatically synchronize with its devices. The Company’s platform allows its users to see trends and achievements, access motivational tools, such as virtual badges and real-time progress notifications, and connect, support, and compete with friends and family. Its direct connection with the users enables it to provide personalized insights, premium services, and information about new products and services. Its services include virtual coaching through fitness plans and interactive video-based exercise experiences on mobile devices and computers. In addition, its platform through an open application programming interface, or API, enables third-party developers to create health and fitness applications that interact with its platform. Through its open platform and community of users, it has an ecosystem that includes thousands of third-party health and fitness applications that connect with its products and enhance the Fitbit experience.
Through its online dashboard and mobile applications, the Company provides users with charts and graphs of their progress, deeper analysis of their activities, and the ability to log caloric intake. Additionally, it motivates users through real-time feedback, including notifications, leaderboard and challenge updates, and virtual badges. The Company’s platform also offers users social features, such as leaderboards and challenges that allow users to receive and provide support and engage in friendly competition. The Company’s online dashboard and mobile applications are available through the iOS App Store, Google Play, Windows Store, and on Fitbit.com. Fitbit Premium is the Company’s membership that serves as an around the clock virtual personal trainer delivered to users through any Web browser. It includes personalized reports and analysis of weekly data accompanied by recommended health and fitness targets and comparisons against peer benchmarks for weight, activity and sleep. The Company also operates FitStar, a provider of interactive video-based exercise experiences on mobile devices and computers that utilize algorithms to adjust workouts for individual users based on data gathered during their workouts.
The Company’s platform enables various types of people to get fit their own way, whatever their interests and goals. Its users range from people interested in improving their health and fitness through everyday activities to endurance athletes seeking to maximize their performance. The Company’s users can synchronize their Fitbit devices with, and view their dashboard on, their computers and over 150 mobile devices, including iOS, Android, and Windows Phone products. The Company sells its products in over 45,000 retail stores and in more than 50 countries, through its retailers’ Websites, through the online store at Fitbit.com, and as part of its corporate wellness offering.
The Company offers its users a personalized online dashboard and mobile applications that synchronize automatically with its connected health and fitness devices, and provides the users with a range of information and analytics, such as charts and graphs of their progress and the ability to log caloric intake. It also offers services on a subscription basis that provide personalized insights and virtual coaching through fitness plans and interactive video-based exercise experiences on mobile devices and computers.
The Company competes with Garmin, Jawbone, Misfit, Adidas, Under Armour, Apple, Google, LG, Microsoft, Samsung and Xiaomi.
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