Fitbit Inc. FIT 2.75% may be poised to deliver a strong quarter in Q2, but investors should expect the Brexit vote to take some of the wind out of the stock’s sails. According to Citi analyst Stanley Kovler, the company’s long-term positive momentum will remain intact.

Citi is calling for a Q2 earnings and guidance beat from Fitbit, estimating $0.14 in EPS and $579 million in revenue on the quarter. Citi is also calling for Q3 revenue of $502 million.

“We continue to be bullish on Fitbit’s secular growth story, driven by accelerating int’l penetration, improving execution, some easing of competition (e.g. Jawbone) and potential upside from new product releases slated for late 2016,” Kovler explained.

Despite concerns over easing demand for Alta and Blaze, Citi’s App Index data suggests that demand for both devices actually increased in Q2 compared to Q1.

Unfortunately for Fitbit bulls, the stock still has several near-term issues to overcome. Kovler said…

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