Fitbit Inc. (NYSE:FIT) is a manufacturer of smart fitness gadgets which help track the daily activity, food, exercise, weight, calories and other related information in order to help and motivate users to remain healthy and fit. Most of the products from the company are wearables usually in the form of a smart watch. The company launched the latest of their smart fitness watches Blaze last week, which has been exceptionally well received by people belonging to different fitness categories.
Dougherty & Co. analyst Charles Anderson remained largely impressed by initial volumes of Blaze and is of the view that the newly launched fitness gadget will likely exceed the expectations as it continues to sell at a rapid rate. In the past, the analyst and the firm in general have insisted on the fact that the customer reaction to Fitbit products will directly impact the stock prices; and as it stands, the stock for Fitbit is in fact, trading at an elevated price of $13.33 with 2.30% increase, affirming the analyst’s hypothesis. Furthermore, Mr. Anderson remained very confident that Blaze will overwhelm expectations by quite a margin, which, given his hypothesis will result in FIT trading at an inflated price. A similar phenomenon could ensue, given FIT properly manages the timing of future product launches to drive potential upside, however, public reception remains an important factor. In order to get more constructive on the stock, the upcoming launch of Alta will play a critical role, asserted Mr. Anderson.
Fitbit Blaze has also been officially launched India and will cost $282 for an average consumer. The stock is currently trading at $13.33 during the second hour of trading.