Fitbit Rallies As RBC Initiates Coverage At Buy

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.