Fitbit stock upgraded to overweight at Barclays as sales undeterred by Apple Watch

Shares of Fitbit Inc. FIT, +4.17% climbed nearly 4% in premarket trade Monday after the stock was upgraded to overweight from equal weight at Barclays. While shares of Fitbit have fallen 26% over the last 30 days, compared with a 1.2% increase for the S&P 500, Barclays analyst Matt McClintock called the sharp decline unjustified and said the company has proven to have strong metrics despite competition concerns. The analyst maintained a $49 price target on the stock, and shares of Fitbit were on track to open around $28.93 on Monday. Despite fears that Fitbit would struggle with the release of the Apple Watch AAPL, +0.61% which has also been marketed as a fitness device, Fitbit's revenue growth rate accelerated in the second and third quarters compared with the same quarters in 2014 before the watch's release, said McClintock. This holiday season is also a positive catalyst, he said, with sales of fitness wearables off to a strong start and Fitbit remaining one of the most sought-out brands.