Q1 Checks Suggest Fitbit No Longer Owning The Wearables Market

Citigroup analyst Stanley Kolver reiterated a Sell rating for Fitbit Inc (NYSE: FIT) with a price target of $5.

The analyst is concerned by slipping wearables market share, currently at 12 percent after the first quarter and down from 23 percent year over year.

The former No. 1 in the market fell to third, behind Apple Inc. (NASDAQ: AAPL) and Xiaomi with 15 percent each.

Checks on app downloads, Google searches and pricing suggest continued weakening domestic sales in the near-term.

Kolver noted that while U.S. sales may be lagging, the company’s international business — particularly in Europe and Latin America — is showing improving trends.

The largest factor going into second-half fiscal 2017 will be Fitbits product cycles and launches into new categories, including watches and headphones.

In the calendar first quarter, companies with “watches” were outperforming those with “trackers.”

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