Analyst Says GoPro Price Competition Not A Factor In Outlook

GoPro Inc GPRO isn't competing on price for action cameras but rather on easing its customers' experience with the product, an analyst said Wednesday.

The company, which beat expectations late Tuesday, gained more than 12 percent recently, trading at $52.98. Shares are down 16 percent year-to-date.

Northland Capital's Gus Richard boosted his price target 8.6 percent to $76 and reiterated an Outperform rating on GoPro.

Rather than trying to beat low prices on action cameras increasingly available from competing companies, Richard said GoPro is "focusing on enhancing the overall user experience."

Richards said GoPro's "market opportunity is significantly larger than investors currently understand."

Also Wednesday, Raymond James upgraded GoPro to outperform, from Market Perform.

GoPro on Wednesday posted earnings of $0.24 a share, a third higher than Wall Street expected, while revenue grew 54 percent.

The company is investing in editing and content management software, while sponsoring athletes and high-profile events.

"This is driving social media metrics and leading to increased brand awareness and market adoption of its products," Richard said.

The company forecast revenue growth between 5 percent and 10 percent, while earnings will be up sequentially about 4 percent.

Richards said the forecast suggests "strong momentum and promising growth."

Analysts on average maintain an Overweight rating and $60.82 target on GoPro according to FactSet.