Shares of Fitbit Inc. rose more than 2% in premarket trade Thursday after analysts at Stifel axed their price targets on the stock by nearly half to $35 but reiterated a buy rating and said the company's fundamentals and future growth prospects remain strong. Market adoption of Fitbit products is pacing ahead of expectations, and the market for digital fitness and corporate wellness continues to grow, said analyst Jim Duffy. However, the market has been "unwilling to reward" Fitbit's shares with a multiple for future growth, and seems to be questioning the company's ability to grow, he said. His price target implies a return of 96% from Wednesday's closing price of $17.79. Shares of Fitbit have fallen 52% over the last three months, versus an 8% decline for the S&P 500. The average rating and target price among 15 analysts surveyed by FactSet remains the equivalent of buy, while the average target sits at $39.53, which would mark a 122% return.
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