Fitbit Reports Solid Q1, Still Plans To Release Smartwatch This Year

Baird Equity Research maintains its Neutral rating on Fitbit Inc (NYSE: FIT) Thursday, one day after the wearable device maker reported first-quarter earnings that exceeded expectations.

Baird said quarterly earnings were solid, but uncertainty over the timing of its plans to release a smartwatch required caution.

“Given competitive uncertainties and negative free cash flow, we are maintaining our Neutral rating with a $6 target price,” Baird said. Fitbit was trading at $6.51 at one point on Thursday, up 14.6 percent.

Fitbit is seeking to enter the smartwatch market and compete with Apple Inc. (NASDAQ: AAPL).

“The company reiterated plans to release a smartwatch later this year, though did not indicate a time frame, with a focus on health and fitness, long battery life and an interactive social component,” Baird said. “While this could open up a new growth vertical, it may also be competing with a new version of Apple Watch.”

At time of publication, shares of Fitbit were up 13.91 percent at $6.47.

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Fitbit’s Q Beat Trumps Mixed Guidance Stock Up 14 Percent

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