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Barclays Cuts GoPro's Price Target To $25

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Barclays Cuts GoPro's Price Target To $25
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  • GoPro Inc (NASDAQ: GPRO) shares dipped 8 percent on January 7.
  • Barclays’ Joseph Wolf maintained an Overweight rating for the company, while reducing the price target from $40 to $25.
  • Value stocks in the US emerging technologies sector look more attractive than growth stocks, Wolf stated.

For the US emerging technologies segment, 2015 proved to be a challenging year, with the median stock down 21 percent, versus a 1 percent decline in the S&P 500. Analyst Joseph Wolf pointed out, however, that this does not necessarily imply that stocks are now cheap.

Related Link: GoPro Is 'late' To The Drone Market

Wolf maintained a Neutral view on the group, citing a “mixed outlook for various end markets.” He recommended a “selective approach focused on value,” while adding that company-specific growth and catalyst stories are likely to perform best in 2016.

With balance sheets being healthy, there may be an “outsized focus” on M&A and buybacks, the analyst commented.

The Barclays Global Strategy team indicates that “value stocks look attractive versus growth stocks heading into 2016.” It cited ARRIS Group, Inc. (NASDAQ: ARRS) as the Top Pick for 2016 and Corning Incorporated (NYSE: GLW) as one of the cheapest stocks. CEVA, Inc. (NASDAQ: CEVA) and Orbotech Ltd (NASDAQ: ORBK) are expected to continue to outperform in 2016.

The FY2 EPS estimate for GoPro has been reduced from $1.86 to $1.19.

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

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