Barclays Raises GoPro Inc Price Target, Struggles With Valuation

Barclays raised its price target Tuesday for GroPro Inc GPRO from $45 to $60, but maintained an Equal-Weight rating.

The price target is well below the stock's Monday close of $93.79. Analyst Joseph Wolf noted that “expectations and enthusiasm support the stock” while he has struggled with GoPro's valuation since early September.

Wolf's report explained that “investors either think GoPro is an extraordinary hardware company, or have a high degree of confidence that the media/content strategy could one day generate billions in revenue.”

The report indicated that Wolf does not see any misses in the near term and that “the recent launch of the Hero4 line of cameras and new accessories was on time ahead of the crucial holiday season - 4Q sales are 40% of annual revenues. Supply chain commentary and our channel checks of Best Buy, Walmart, and Target point to a clean US channel without excess supply.”

The report suggested long-term investors hold the stock through near-term volatility, which may come as a result of the current valuation combined with the IPO lock-up period ending on December 22.

GoPro Inc recently traded at $92.11 in the premarket, down 1.8 percent.