Fitbit Blaze Exceeding Expectations, Dougherty Says

Dougherty’s Charles Anderson reiterated a Neutral rating on Fitbit Inc (NYSE: FIT).

Upside Potential

“We have consistently said that Fitbit is likely to trade in sympathy with how well its new products are received by the market. While it is early, we can say with confidence that the Fitbit Blaze looks to be exceeding expectations out of the gate,” Anderson pointed out.

Therefore, the analyst believes that there is potential for the stock to outperform in the near term. However, Anderson would prefer to get more constructive is there was evidence of these trends continuing and the launch of Fitbit Alta was received positively.

Related Link: Fitbit Is The Top Wearables Vendor And Is Outpacing Competitors

Fitbit Blaze

Anderson also noted that Fitbit Blaze had received a “staggeringly” high number of positive reviews compared to the company’s earlier releases, with 231 “verified” reviews on Amazon.com. Of these, 83 percent had rated Blaze with 4 or 5 stars.

The reviews received were three times the number received by Charge HR in the first nine days on the site, with only 47 percent rating Charge HR with 4 or 5 stars.

“While we caution it is early, the early adopters appear to adore this product -- which is not what we were expecting to see,” the analyst noted. Management also indicated that pre-orders for Blaze exceeded expectations.