Fitbit (FIT) - Get Report needs to improve its software if it wants to stay competitive, Morgan Stanley says, according to Barron's. The firm has an "equal weight" rating and a price target of $6.50 on the stock.

"Our analysis finds that persistent improvements in software features drive consistency across product cycles. New functionalities in fitness often migrate to other models targeting different audiences (marathon runners, triathletes, outdoors, etc.) and price points. Without persistent software improvements, new SKUs and product refreshes struggle," Morgan Stanley said.

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