Stock Picker Sees Much Higher Price For Fitbit

Dan Zanger was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Fitbit Inc (NYSE: FIT) has surged 90 percent above its recent initial public offering price, but a stock picker told Benzinga it will go much higher.

The maker of electronic fitness-tracking bracelets traded recently at $37.88, up $0.82, and went public Thursday priced at $20 a share.

"It has all the classic signs of a stock that wants to go much much higher from here," said Dan Zanger, editor of ChartPattern.com. "There's not enough shares to go around."

Zanger said the shares may hit $50, "then take a rest for six or eight weeks and then surge to $80 or $90 from there."

Fitbit's growth characteristics are comparable to those of GoPro Inc (NASDAQ: GPRO) when it went public last year, according to Zanger.

Moreover Fitbit's growth profile is "much better," according to Zanger, than another recent market darling, Shake Shack Inc (NYSE: SHAK), whose share are off more than 30 percent in the past month.

"Talk about goofy moves in the market," Zanger said of Shake Shack.

Some observers have cautioned that Fitbit faces inevitable competition from Apple Inc. (NASDAQ: AAPL) and other bigger and better-financed rivals.

"Single-product companies have gone public before, of course," The New Yorker Magazine noted recently, calling Palm Inc. "the most obvious cautionary tale."

Palm Pilot went public in 2000 but its hand-held organizer devices were eventually made obsolete by smartphones. The brand was discontinued in 2011.