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JMP Securities: GoPro Sellers' 'Open Net,' Investors Should 'Take That Shot'

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Although GoPro Inc (NASDAQ: GPRO) posted stellar fourth-quarter numbers on Thursday, beating even the most bullish of all estimates, the company’s stock took a massive plunge on Friday on back of the company noting that sales in this quarter will slump by 46 percent from the previous quarter.

Alex Gauna, managing director of JMP Securities, was on CNBC Friday to dissect GoPro’s quarterly numbers.

Related Link: GoPro or GoWow? Company Soars On 'Apple-Esque' Results

Reiterating Outperform Rating

“We are not backing off of our view. It was great quarter and as the stock has sunk here, JMP securities likes it more. And what’s not like about this quarter?” Gauna said.

“You have got the top-line accelerating, gross margins appreciating, the media story expanding with its live events with ESPN Winter X Games, as well as the National Hockey League's All-Star Game. They reached almost 32 million new viewers – or live viewers I should say – on their debut weekend. So, JMP securities does look at this quarter as a real beat.”

Guidance Not As Bleak As Being Portrayed

He continued, “And as far as the guidance that may have disappointed some, what we like to point out is we were at the same place at the beginning of 2014 with conservative expectations that the company blew the doors off, earnings more than 50 percent higher delivered than what we were looking for entering the year.”

“We think they have set a low bar again, and the sellers of the stock have left an open net and we think investors should take that shot.”

Latest Ratings for GPRO

DateFirmActionFromTo
Sep 2018OppenheimerUpgradesPerformOutperform
May 2018CitigroupMaintainsNeutralNeutral
Mar 2018CitigroupMaintainsNeutralNeutral

View More Analyst Ratings for GPRO
View the Latest Analyst Ratings

Posted-In: Alex Gauna CNBC JMP SecuritiesAnalyst Color Analyst Ratings Media

 

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