Skip to main content

Market Overview

Enough's Enough: This Analyst Believes The GoPro Sell-Off Is Overdone

Enough's Enough: This Analyst Believes The GoPro Sell-Off Is Overdone

It’s been a long time since GoPro Inc (NASDAQ: GPRO) investors had reason for optimism. However, more than three years after its 2014 IPO and after a 90 percent decline from its all-time high, Longbow Research analyst Joe Wittine believes the bottom is finally in for GoPro.

Longbow upgraded GoPro to Buy and says the sell-off that occurred over the past few years got a bit overdone. According to Wittine, GoPro has the potential to top consensus earnings expectations in 2018.

Wittine on Wednesday wrote that the product-launch sell-off that GoPro investors have come to expect serves as a buying opportunity this time around. The stock is down 16.3 percent in the past month following the launch of the HERO6.

“Short-term, the stock can squeeze on quarterly beats, with 25% of GPRO's float short, and long-term upside is possible through ongoing operational improvements, product innovation (Fusion, KARMA 2), and continued momentum internationally,” Wittine wrote.

Longbow’s initial channel checks on the HERO6 suggest demand for the device is “good enough” heading into the critical holiday shopping season. Wittine expects an 8 percent decline in camera unit demand over the next four quarters, but said declining demand will be more than offset by a 16 percent increase in average sales price.

Those higher ASPs, wider gross margins, and careful management of channel inventory could help drive meaningful earnings beats for GoPro in coming quarters, Wittine said. After pushing $30 million in sales from Q4 to Q1 2018, Longbow is now calling for $1.50 billion in 2018 sales from GoPro.

In addition to the Buy rating, the firm has a $13 price target for GoPro stock.

Related Link: From ADI To AMD, Morgan Stanley Breaks Down Semiconductors

Latest Ratings for GPRO

May 2021Morgan StanleyMaintainsUnderweight
Feb 2021Morgan StanleyMaintainsUnderweight
Dec 2020Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for GPRO
View the Latest Analyst Ratings


Related Articles (GPRO)

View Comments and Join the Discussion!

Posted-In: Hero6 Joe WittineAnalyst Color Upgrades Price Target Top Stories Analyst Ratings Tech Best of Benzinga

Latest Ratings

PHXSeaport GlobalInitiates Coverage On
AFCGLake StreetInitiates Coverage On29.0
OSSNoble Capital MarketsUpgrades7.0
NCNOGabelli & Co.Upgrades
HAECJS SecuritiesUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at