JPMorgan Stills Likes GoPro Amid 'Robust' Demand For Hero 4 Black And Silver

• Shares of GoPro Inc GPRO have appreciated 10.64 percent in the past one month, rising more than 5 percent in morning trade on January 5.
• J.P. Morgan analysts mentioned that channel checks suggest that the company’s Hero 4 Black and Silver models saw robust sales during the holiday season, which could drive better than expected 4Q results.

J.P. Morgan analysts stated that channel checks also showed that “interest in the GoPro product family remains robust, judging by Google Trends search metrics during 2015 X-mas pointing to levels last seen during the initial product launch in Oct 2014.”

However, Hero Session has been struggling, and continues to do so, with the analysts noting that some stores that carry Hero 4 Black and Silver do not carry Hero Silver. The Session’s inventory levels are expected to continue to be elevated for another couple of quarters, making it difficult to predict the 4Q numbers.

For the longer-term, the analysts remain constructive on the stock, driven by expectations of increased R&D activity leading to innovations in 2016.

According to the J.P. Morgan report, near term catalysts for the company appear to be positive and include “1) GoPro Karma Drone expected in 1H16, 2) Flagship Hero Black and Silver model refresh, 3) Media monetization initiatives, and 4) Consumer Electronics Show (CES).”