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Analysts Go Cold On GoPro

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GoPro Inc's (NASDAQ: GPRO) wild ride in the stock market this year currently has analysts cold on the company, which makes body mounted cameras for action sports enthusiasts.

Among 15 analysts tracked by FactSet, 10 currently rate GoPro at Hold, one rates it a Sell and four maintain Buy ratings.

GoPro shares are up about 114 percent since its June stock market launch, and changed hands recently at $66.50, down 3.9 percent.

Oppenheimer's Andrew Uerkwitz said last month that demand for GoPro's product is limited to those "interested in sharing their active lifestyle, or folks who enjoy a good video editing session"

Although Uerkwitz thinks GoPro will turn in a bang-up holiday quarter, 2015 will reveal slowing growth.

With the market for digital cameras and camcorders in a nosedive, "it's hard to see longer term opportunities" for GoPro's products in North America and Europe, Uerkwitz said, maintaining a Hold and $45 target.

Relatively high-quality smartphone cameras have demolished demand for standalone compact digital cameras which generally lack connectivity. Digital camera sales are barely a third of their 2011 peak.

Amazon said Friday that the holiday best seller in its camera category was the GoPro Hero4 and related accessories.

Wedbush 's Michael Pachter last week reiterated a Buy rating on GoPro, citing strong holiday sales of the company's products.

Similarly JPM's Alex Gauna is bullish on GoPro telling CNBC earlier this month that its holiday season sales cycle is "absolutely on fire."

Gauna expects the company will push into international market and meet with success as a media company.

Although little revenue has resulted so far, GoPro is actively "curating" media content through its GoPro Network, which includes channels on Facebook, Twitter and YouTube.

But meanwhile, GoPro must fend off growing competition from the likes of Sony Corp. (NYSE: SNE), Garmin Ltd. (NASDAQ: GRMN) and Taiwan electronics maker HTC Corp., which have each launched products directly competing with GoPro.

Latest Ratings for GPRO

DateFirmActionFromTo
Mar 2017CitigroupUpgradesSellNeutral
Mar 2017Goldman SachsDowngradesNeutralSell
Mar 2017CitigroupInitiates Coverage OnSell

View More Analyst Ratings for GPRO
View the Latest Analyst Ratings

Posted-In: Alex Gauna Andrew Uerkwitz JPM Michael PachterAnalyst Color Price Target Reiteration Analyst Ratings

 

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