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Tech Expert: Own GoPro Before It Starts Selling Drones

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Tech Expert: Own GoPro Before It Starts Selling Drones
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Sean Udall was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Tech strategist Sean Udall has high hopes for GoPro Inc (NASDAQ: GPRO) ahead of the release of its second quarter results after Tuesday's market close.

Udall said that GoPro places within his top five potential earnings beats for the quarter, noting that the company has "absolutely crushed it" the last two quarters.

Udall said GoPro is still a "young" company with its IPO still fresh in many investors' minds. He also noted that the company has a "pretty decent" balance sheet – a fact that many investors tend to overlook when it comes to "young" companies.

Related Link: Drones, Hero4 Give GoPro Enormous Opportunity Heading Into Earnings

With that said, the tech expert also noted that he "wouldn't be surprised" if GoPro got taken out in a "fairly aggressive M&A maneuver" as shares are trading at "only" a $7.6 billion market cap. He further suggested that Apple Inc. (NASDAQ: AAPL) should acquire the company, but did add that he "doubts they will."

If GoPro were to be acquired, Udall speculated the price tag on such a deal would be in the $80 to $100 per share range. However in the near-term, he noted that shares are setting up for a run above the $60 level where it is unlikely to see any resistance. If the company reports strong earnings, shares could rise to the $70 level where it may see resistance at the $72 or $75 level.

Looking forward to next year, Udall believes the company will sell "the most trusted, probably the longest lasting, and best" drones in the market.

Bottom line, "you are going to want to be in the stock" before the company begins selling drones.

Latest Ratings for GPRO

DateFirmActionFromTo
Nov 2017CitigroupMaintainsNeutral
Oct 2017Bank of AmericaMaintainsUnderperform
Oct 2017Longbow ResearchUpgradesNeutralBuy

View More Analyst Ratings for GPRO
View the Latest Analyst Ratings

Posted-In: #PreMarket Prep Sean UdallAnalyst Color Long Ideas Exclusives Analyst Ratings Tech Trading Ideas Best of Benzinga

 

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