Shares of Fitbit Inc. FIT, -3.23% shot up 5.6% in premarket trade Friday, bouncing off a record close in the previous session, after Wedbush Securities turned bullish on the wearable device maker, citing optimism over the company’s expansion into the healthcare-MedTech market. Analyst Michael Pachter raised his rating to outperform, after being at neutral since Nov. 2, 2016. “We’ve warmed up,” Pachter wrote in a note to clients. “We think Fitbit has an excellent opportunity ahead with MedTech, particularly in collaboration with Google.” He believes Fitbit will start reporting “meaningful contribution” from MedTech as early as 2019. “Additionally, shares have recently pulled back well below our $6.50 price target, providing an excellent opportunity to get involved in the Medtech vertical at a reasonable price,” Pachter wrote. The stock has plunged 32% over the past three months, while the S&P 500 SPX, -2.06% has lost 2.5%.
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