Betty Chen, analyst at Mizuho Securities issued a research note today, reiterating a Buy rating on Fitbit Inc (NYSE:FIT) stock along with a 12-month price target of $20. The San Francisco, California based manufacturer of consumer electronics is set to report earnings for the first quarter of 2016 on May 4, 2016.

Ahead of earnings, the analyst at Mizuho believes the company will beat the analysts’ estimates and provide the investors with a solid guidance for upcoming quarters.

The analyst mentioned in his report: “We expect a 1Q beat and solid forward guidance to support shares despite the stock’s 46% appreciation since late February. Our recent survey highlights increases in Fitbit ownership as well as planned purchase intent at higher ASPs.”

Wall Street analysts project Fitbit’s revenue to stand at $206.6 million for the first quarter, surging a whopping 46.6% as compared to the year ago quarter. Moreover, the company posted revenue of $348.3 million during 4QFY15.

Furthermore, analysts at the Street forecast Fitbit to post earnings of 8 cents per share for 1QFY16. Additionally, during the previous quarter, its earnings per share (EPS) clocked in at 35 cents.

The tech company which conducted its Initial Public Offering (IPO) last year, has had a superb history for beating Street analysts’ expectations, as it surpassed the estimates for all three quarters when it publically announced its financial results. During the fourth quarter of 2015, Fitbit beat the consensus estimate for revenue by 9.83% while surpassed the earnings’ estimate by nearly 38%. However, the stock reacted negatively on the earnings and revenue beat, as it slid approximately 21% the day after earnings release.

Moreover, Mizuho analyst shared in his report that the data obtained from the survey indicates “increased upgrade intent and attachment rate, with 21% of Fitbit device buyers purchasing at least one additional wristband in the last three months.” The analyst further believes that this data signals towards Fitbit’s long term growth catalysts and expanding margins.

A total of 22 analysts at Wall Street provide coverage on Fitbit Inc stock. Of these, 12 analysts rate the stock as a Buy, another 10 analysts rate it as a Hold. The 12-month consensus price target on the stock is $22.65, reflecting a return potential of roughly 25% against the stock’s current price.

The stock is currently trading at $18.13, down about 0.60% as of 10:38 AM EDT.