Pacific Crest initiated coverage on Fitbit Inc.'s stock Tuesday morning at overweight. Analyst Brad Erickson set a 12-month price target of $47, which represents 47% upside from Monday's closing price. "The business is growing ridiculously fast, margin expectations are depressed, and we like Fitbit's opportunities beyond consumer in corporate wellness channels," he said. The analyst also called Apple Inc.'s competitive concerns overdone and said there could be further upside to growth forecasts if Fitbit ramps up marketing spend. Shares of Fitbit have fallen 28.3% over the last month, compared with a 6.6% decline for the broader S&P 500. Its shares climbed 3.3% in premarket trade.
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