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Wearable fitness device maker Fitbit ( FIT ) likely had strong holiday season sales, but investors are worried about its prospects for 2016, Sterne Agee CRT analyst Rob Cihra said in a research report late Wednesday. Fitbit stock sank to an all-time low Thursday amid a broader market sell-off, down more than 8%, near 13.50, in morning trading on the stock market today . Earlier in the day, it traded as low as 12.90. The San Francisco-based company is scheduled to report fourth-quarter earnings on Feb. 22. Cihra reiterated his neutral rating on Fitbit stock but slashed his price target to 18 from 35. The current market is “in less mood to pay a multiple” for Fitbit, he said. Fitbit’s newest products, the Blaze smart fitness watch and Alta fitness wristband, are unlikely to move the needle much, Cihra said. Fitbit’s “next wave” of innovation might require more new sensor technology rather than new wearable designs, he said. The last product cycle for Fitbit was driven by wrist-based heart-rate monitoring, he said. “The reality, however, is coming up with a step-function improvement like wrist-based HR is not something we should probably expect every year,” Cihra said. “A hoped-for function like blood pressure monitoring, for example, looks on the roadmap/horizon but likely still requires a lot more work to shrink necessary mechanics.” Fitbit’s latest products, the Blaze and Alta, are more about growing an accessories business, namely swappable wristbands, he said. Both new products are due out in March. One person bullish on Fitbit is Salesforce.com ( CRM ) CEO Marc Benioff. On Wednesday, regulatory filings revealed that Benioff owns 5.3% of the company, or 5.3 million of the 99 million outstanding shares. RELATED: Fitbit Gets Fashionable With Alta Fitness Wristband . Scalper1 News
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