Stifel analyst Jim Duffy upgraded Fitbit to Hold from Sell while lowering his price target for the shares to $5.50 from $6.00. The analyst believes the shares, following the recent weakness, have reached a "valuation backstop." He also expects the company's cash burn will be limited in 2018. Duffy, however, does not see a path to profitability for Fitbit in 2018 and continues to have concerns about both the durability of the fitness tracker market and uptake of its smartwatch offerings. The analyst sees a balanced risk/reward ahead of the company's Q4 earnings report.