Fitbit received its most bullish of all analyst reports on Tuesday. RBC Capital Markets started it with an Outperform rating and it assigned a $45.00 price target. What stands out here is that this was the most bullish view of the analyst reports that have been seen so far. The other two existing price targets that have been seen were $28.00 and $44.00.
Fitbit originally priced at $20.00 but entered the market well above at $30.40 on June 18, 2015. On its first day of trading, roughly 52.1 million shares moved. The stock closed at $29.68 on its first day, and now Fitbit has a post-IPO range of $29.50 to $40.45.
The fitness-tracking device maker was said to be only in the early growth stages of its product cycle. Other drivers shown were a move toward the international market, as well as adoption in the corporate wellness segment. Both are deemed to be even in the earlier stages than the U.S. consumer segment.
RBC sees revenue growing more than 80% in 2015 and almost 30% in 2016. These rates of growth are expected to help Fitbit grow into a very premium market valuation.
With a slight recovery in general on Tuesday, mid-afternoon trading helped support a solid Fitbit rally. Shares were up just over 10% at $36.92 with about two hours until the close of trading.
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