Wearable device maker Fitbit, the NYSE's newest member, faces some serious challenges from some big names, analysts told CNBC on Thursday as the company went public.
Fitbit has a big market share in the fledgling wearable space, but it's facing increasingly stiff competition from the likes of Apple and Google.
"They come out of the gate as a public company with the highest brand recognition in the market … that's a big advantage," CLSA senior analyst Ed Maguire said in an interview with CNBC.
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By some accounts, Fitbit has about 85 percent share in its U.S. market, Maguire said. But they're competing with smartwatches from Apple and Garmin on the high end, Xiaomi on the low end, as well as watches running Google's Androidwear operating system, he noted.
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In order to gain an edge overthe competition, Fitbit will need to build out its platform forthird-party applications, Maguire said.
"The test in the public markets will be their ability to execute over the next few quarters," he added.
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But investors may want to avoid the stock completely, according to Trip Chowdhry, managing director of equity research at Global Equities Research.
Fitness trackers from Xiaomi are priced at less than $20 while Fitbit's gadgets are closer to $100 or more. Consumers are highly price sensitive, Chowdhry said.
