Fitbit Inc.’s stock ran up 4% in premarket trade Tuesday, after the RW Baird issued an upbeat research note on the maker of fitness activity trackers. Analyst William Power initiated coverage of Fitbit with an outperform rating and stock price target of $52, which is 29% above Monday’s closing price, and 2.6 times the $20 initial public offering price. “Our proprietary fitness band survey and other retail channel checks suggest strong ongoing sales momentum,” Power wrote in a note to clients. “While valuation has gotten stretched following strength since the IPO, we believe estimates could prove conservative and expect operating momentum to push the shares higher.” The stock has gained 35% since the first day of trading on June 18, when it closed 48% above its IPO price.
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