Fitbit Inc. shares are down 15% in premarket trading after the digital health and fitness company was downgraded to hold from buy at Stifel based on analyst belief that a new operating model is risky. The price target is $35. "In a departure from objectives communicated since prior the IPO, Fitbit is specifically planning operating deleverage in fiscal year 2016," analysts wrote in a Tuesday note. Investments in digital health strategies won't drive revenue until 2017 "at the earliest," the note said. The increased research and development spend is viewed as a risk based on unpredictable revenue growth. Fitbit gave weak guidance during its earnings announcement on Monday, warning that new products would weigh on results in the current quarter. Fitbit shares are down 44.2% for the year so far while the S&P 500 is down 4.8% for the same period.
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