Fitbit Rallies As RBC Initiates Coverage At Buy

By MarketWatch Pulse

Shares of Fitbit Inc. rose Tuesday, following two days of losses, after RBC Capital Markets initiated coverage of the stock with a buy rating and a price target of $45. "The connected health/fitness market is in the early growth stages, Fitbit is rapidly gaining share and we see increasing unit/average selling price growth with a platform approach," said analyst Mark Sue. The analyst projected as much as an 83% revenue growth this year with a more aggressive international growth and corporate wellness programs. Fitbit shares jumped 7.5% to $35.71 in recent activity, up nearly 80% from its initial public offering price of $20.

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