FBN Securities Offers Insight Into GoPro Inc Coverage

Shares of GoPro Inc GPRO are experiencing a strong appreciation in share price Monday following bullish coverage on the stock from FBN Securities.

Analysts at the firm placed an Outperform rating and $70 price target on shares of GoPro.

Shebly Seyrafi of FBN Securities highlighted four arguments on why GoPro shares are likely to move higher:

GoPro has developed the best action cameras.

As Seyrafi pointed out, “according to PCMAG, GPRO’s Hero3 Black Edition is the most versatile action camera available. While most competing cameras can do 1080p at 30 fps (frames per second), and 4K at 15 fps, the GoPro Hero Black Edition can do 1080p at 60 fps and 4K at 15 fps.”

GoPro is expanding into content management with GoPro Studio and GoPro App.

GoPro Studio is a free desktop application that allows consumers to create entertaining videos from GoPro cameras. GoPro App allows users to connect their GoPros to smartphones for camera control and for copying photos and videos from their GoPros to a mobile device or for sharing on social media.

GoPro is strongly positioned to penetrate global markets.

Seyrafi found that 38 percent of GoPro’s revenues are derived from international markets. In addition, Seyrafi indicated that GoPro witnessed an 80 percent increase in Asia revenue year over year in the fiscal second quarter, which analysts feel will accelerate along with European, Middle East and Africa revenues.

GoPro is becoming a recognizable brand and household name.

Seyrafi revealed that in the full year 2013, users uploaded 2.8 years of GoPro videos onto the Internet. Whereas in the firm’s fiscal first quarter 2014 there was over 50 million hours of uploaded videos on YouTube with “GoPro” in the title.

Analysts at FBN Securities also believe GoPro is becoming a bit of a "movement" stating, "As more people spend time online to share personal experiences through photos and videos, the GPRO “movement” is further enhanced."

Shares of GoPro Inc recently traded at $62.68, up 6.7 percent.