How Does The Smart Money Feel About This Hot Wearable Tech Company?

On the other hand, analysts are bullish on Fitbit. A total of 11 analysts have ‘Buy’ ratings, while seven have ‘Hold’ ratings. No analysts have a ‘Sell’ rating. Among them, Morgan Stanley has an ‘Overweight’ rating with a price target of $58 per share. The investment bank thinks the manufacturer of wearable fitness-tracking devices possesses a strong brand and leading market share, which will enable it to benefit from the fast growing market. The bank doesn’t think Fitbit will be negatively affected much by Apple’s iWatch, as 80% of Fitbit customers say that they don’t plan to acquire an iWatch. Morgan Stanley thinks Fitbit’s demand will be strong, as its channel checks show continued consumer interest. Overall, analysts have a consensus price target of $51.63 per share, giving shares an upside of 38.40% from current levels.

We agree with the hedge funds and would stay on the sidelines for now. Fitbit has a lockup expiration on December 15 that could send sentiment lower and supply higher.

 Disclosure: none