Citi Raises Estimates On GoPro Following Q2 Results, Raises Target To $63

In a report published Wednesday, Citi analyst Jeremy David maintained a Neutral rating on

, while raising the price target from $56 to $63. GoPro reported better-than-expected 2Q15 results with revenue and EPS of $419.9 million and $0.35, respectively. "The company is executing very well, increasing its pace of innovation and growing distribution 60% y/y in terms of retail outlets and 75% y/y in terms of linear feet of POP Displays, while continuing to expand GM (+1% q/q and +4% y/y)," analyst Jeremy David said. David said that the signs of deceleration in the company's end market trends were puzzling in view of GoPro's investments for creating brand awareness and expanding its distribution and product portfolio. In the report Citi stated that there were two negatives in an otherwise strong print, elaborating them as "a deceleration in sales growth in the Americas for 3 quarters in a row (albeit the current 39% y/y growth is still strong) and a camera ASP decline of ~5-10% y/y." The EPS estimates for 2015 and 2016 have been raised from $1.55 to $1.86 and from $1.86 to $2.14, respectively. "LT, we view the consumer drone/ quadcopter opportunity as attractive and believe GoPro could over time become a major player by leveraging its installed base and brand," the report added.