Fitbit's stock closed up about 12 percent Wednesday, after two firms raised outlooks based on stronger-than-expected sales of new products.
Analysts at both Citigroup and Pacific Crest pointed to sales for Fitbit's newest products, the Blaze and Alta, as their main reason for raising their estimates.
Citi raised its earnings per share and revenue estimates for the first quarter to 4 cents and $460 million, respectively, from 1 cent and $430 million.
Pacific Crest analyst Brad Erickson said in a note Tuesday that "Blaze was the first to launch (in stores Feb. 27) and has seen strong demand with days of inventory healthy at just over four days; we estimate about 1.3 million Blaze devices sold-through in Q1." "Based on our checks and the company's positive preannouncement, we are raising our Q1 and Q2 unit estimates while our Q3 and Q4 unit estimates remain unchanged."
Citi, which has a price target of $30, said: "After mis-executing on product releases (Blaze), product transitions (Charge to Alta), and higher opex guidance for CY16 in early Q1'16, we believe the recent announcement of 2M+ in Blaze & Alta sell-in now sets up for a positive Q1 and Q2 guide."
Shares of Fitbit have fallen nearly 45 percent year-to-date but have gained over 12 percent in the last month.
Fitbit in 2016
— CNBC's Michael Bloom contributed to this report.