Fitbit (FIT) Stock Jumps, Analysts Say Winner in the Wearable Market, Jim Cramer's Take

Fitbit (FIT) shares are rallying on Tuesday after analysts at Bank of America/Merrill Lynch upgraded the company to 'buy' from 'neutral' with a $36 price target.
By U-Jin Lee ,

NEW YORK (TheStreet) -- Fitbit (FIT) - Get Report  shares are rallying 1.15% to $29.09 on Tuesday after analysts at Bank of America/Merrill Lynch upgraded the company to "buy" from "neutral" with a $36 price target. 

Fitbit stands out in the fast-growing health and fitness wearable market. It's a winner and it's highly profitable, analysts noted.

Looking ahead, analysts are confident about 2016 due to the company's international sales ramp.

When asked if Fitbit can return to its highs, Jim Cramer, portfolio manager of TheStreet's Action Alerts PLUS said he doesn't know if it can get to that level, pointing out that the stock was hit by insider selling. However, he believes it can "bounce" higher. 

Separately, the fitness tracking device maker earlier this month announced that it will sell an additional 7 million shares in a new offering. 

The company said it is looking to boost its "financial flexibility" by raising capital for research and development, marketing, corporate purposes and other expenditures.

However, last Friday, the stock took a beating as the San Francisco company sold fewer shares than it had expected in its secondary stock offering.

According to a filing with the SEC, Fitbit put three million shares of common stock up for sale, down from its initial proposition of selling 7 million shares.  The shares were priced at $29. 

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