Top Wedbush Analyst: HERO4 Will Drive GoPro Earnings Beat

Wedbush Analyst Michael Pachter believes that GoPro Inc GPRO could rise more than 28 percent to $70 within 12 months, according to a note that previews next week's earnings announcement.

Pachter said the firm expects "continued strong demand" for the HERO4 devices to drive an upside beat. The firm's channel checks suggested that the HERO4 Black and HERO4 Silver – two of GoPro's higher priced items – are "consistently among the top three best sellers in the action camera space."

The July quarter guidance from supplier Ambarella Inc AMBA "also bodes well for GoPro's Q2."

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Wedbush also said that it believes that GoPro's guidance was "conservative." Pachter pointed to Q4 2014 and Q1 2015 as evidence that the company has been consistently performing at the top end of those figures. Further, the firm cited recent "bullish statements" by GoPro's top management as evidence that the firm will not miss guidance.

Into the future, Wedbush said that new products, such as the HERO+LCD and HERO4 Session "will provide an additional tailwind in Q3." The firm expects initial Q3 guidance to exceed Wall Street expectations.

GoPro has declined 13.8 percent year-to-date, though prices are off of their March lows below $40. Prices are more than 30 percent above those levels, though still remain well below the 52-week high, which is at $98.47.