Deutsche Bank slashes Fitbit's price target by 50% to $9, says wearables demand is 'waning'

Fitbit smartwatches
Chris Ratcliffe | Bloomberg | Getty Images

Deutsche Bank on Thursday downgraded Fitbit to hold from buy, slashing its 12-month price target by 50 percent to $9 from $18, on concerns of waning demand for wearable devices that has caused the stock to plunge more than 70 percent this year.

"We continue to view FIT as a leader in the wearable fitness category, but given consumer demand appears to be waning for wearable devices, we are taking a wait-and-see approach to the name," equity analyst Sherri Scribner wrote in a note to clients.

As evidence of this trend, the analyst points to metrics from International Data Corporation that show the wearables market grew only 3 percent in the third quarter, a significant deceleration from the 67 percent and 26 percent growth recorded in the first and second quarter, respectively.