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Raymond James’s Tavis McCourt this morning offers an update on shares of Fitbit (FIT) after talking with company management at a conference the bank held last week in Boston.

One takeaway is how the company is plowing money into its “wellness” initiatives:

Fitbit is hiring aggressively from across the healthcare industry spectrum to accelerate its wellness program initiative and other initiatives that are more healthcare centric. Ultimately, Fitbit believes it can strategically fill a very valuable hole in healthcare systems as being a core driver of consumer engagement with providers/payers.

That spend means that investment in operating expenses will be “heavy” in Q2, writes McCourt, as Fitbit had already told the Street.

He looks forward to updates to existing devices from Fitbit, about which management sounded “still very confident":

Fitbit’s guidance is for a very strong 4Q16, driven by the launch of two new products (we suspect updates to the Charge HR and Flex). These products will likely be launched with new/differentiated apps as well […] Since the Surge will likely be the only wearable product in Fitbit’s portfolio not to be updated in 2016, we suspect it will be updated in 2017. The running/triathlon watch category is led by Garmin today, but is much more fragmented than the activity tracker market (Polar, TomTom, Ubuntu, and many more) with higher ASPs, and could represent a nice source of growth for Fitbit in 2017 and beyond.

But McCourt alerts investors not to expect big product announcements at the Consumer Electronics Show next January, which is the venue where prior announcements had been made by Fitbit, such as this past January’s announcement of the “Blaze” smartwatch.

Fitbit will likely not use the venue in future, he writes:

Given the tepid and what appears to be a largely incorrect reaction by the investment community and much of the media related to Fitbit’s launch announcements at CES in 2016 (Blaze and Alta), we doubt the company will be using CES as a product launch platform going forward. We still suspect launching updated and new products in both the spring and fall as a reasonable cadence to project, but we expect new product announcements will be made at alternative venues.

Fitbit shares today are down 23 cents, or 1.6%, at $14.40.