Fitbit Inc. shares are down 14% in premarket trading after the digital fitness company was downgraded to market perform from outperform at Leerink based on uncertain new product sales and poor 2016 visibility. The price target was lowered to $18 from $33. Leerink analysts said first-quarter 2016 guidance fell “well short” of Street consensus, “creating a back-end weighted year that carries risk in our view,” analysts wrote in a Tuesday note. “Given uncertainty around new product sales and second half ramp, we no longer believe a premium multiple will be achieved.” Company shares down 44.2% for the year so far, while the S&P 500 is down 4.8% for the same period.
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