Fitbit (FIT) can sell as many as 109M of its devices in 15 key foreign countries, research firm Longbow estimated in a note to investors today.
OVERSEAS SALES: Fitbit can sell up to 109M devices in 15 key countries outside of the U.S., Longbow analyst Joe Wittne estimated. The company has sold about 50M of its fitness trackers so far, with about 70% of the sales occurring in the U.S., Wittine noted for context. The 109M estimate is conservative because it assumes that the company's sales in those countries will come in below the 15% of smartphones level that it has attained in the U.S., Wittine added, explaining that he assumed that Fitbit's devices would sell at the same rate as Apple's (AAPL) iPhones in each of the countries. Like the iPhone, Fitbit's devices are expensive products made in the U.S., the analyst stated. Additionally, Fitbit will have many of the same competitors overseas as Apple, Wittine believes. In the near-term, Fitbit can sell 17M devices in the 15 countries, he estimated.
OVERALL OUTLOOK: Wittine continues to expect Fitbit's stock to do well over the next year, stating that the company is set to launch two important new products during this time period, while its international sales should increase over the next year. Calling the stock's current valuation "far disconnected" from the company's growth, Wittine kept a $20 price target and Buy rating on Fitbit shares.
PRICE ACTION: In early trading, Fitbit rose over 4% to $15.05.
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