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Sell Fitbit due to new product's 'slow start': Analyst

Fitbit Charge 2
Source: Fitbit

Pacific Crest told investors to sell Fitbit shares, citing the firm's channel research which reveals slower initial sales of the company's new flagship device.

"Checks indicate Charge 2, Fitbit's flagship holiday product, is off to a slow start. Inventory is accumulating in the channel and sell-through is below initial Blaze/Alta levels," analyst Brad Erickson wrote in a note to clients Wednesday.

"We think FIT's utility problem persists, making growth more challenging and tilting risk/reward more unfavorable."