Fitbit is the leading company in the fast-growing wearables market. Seyrafi expects Fitbit to maintain its lead with new hardware and software offerings over the next year, as well as upgrades to existing products, which include activity trackers and the Surge smartwatch.
Research firm Gartner (NYSE:IT) expects the wearable device market to grow at a compound annual rate of 49% from 2015 through 2020. It sees unit shipments rising from 70 million units this year to 514 million in 2020.
Fitbit will continue to grow even as rivals Apple (NASDAQ:AAPL), Garmin (NASDAQ:GRMN), Samsung, Sony (NYSE:SNE) and others ramp up their wearables shipments, Seyrafi said in a report.
San Francisco-based Fitbit has a big opportunity for growth in international markets, which accounted for 22% of revenue last quarter. Seyrafi sees international sales making up half of revenue over time.
Corporate wellness programs are another major opportunity for Fitbit, providing less than 10% of revenue today, he said.
"As more companies grapple with rising health care costs, many are engaging in corporate wellness programs, where Fitbit has a growing presence," Seyrafi said. "We see this segment growing within Fitbit's business."
On Tuesday, Morgan Stanley analyst Katy Huberty upgraded Fitbit stock to overweight from equal weight and raised her price target to 58 from 43.
No comments:
Post a Comment