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Fly News Breaks for February 23, 2016
GPRO, FIT
Feb 23, 2016 | 06:48 EDT
Deutsche Bank analyst Ross Sandler, while admitting he's be on the wrong side of the trade, calls Fitbit's (FIT) risk/reward favorable following the post-earnings pullback in the shares. Fitbit is still a low 30%s grower, yet trades like its negative-growth peer GoPro (GPRO) at 16 times GAAP earnings, Sandler tells investors in a post-earnings research note. Fitbit's Q4 numbers were "very strong across the board," but were overshadowed by the "conservative" 2016 outlook, the analyst contends. He cut his price target for the shares to $28 from $50 and keeps a Buy rating on the name. At least four research firms downgraded Fitbit this morning.