GoPro: Color on Quarter
I have never been a fan of this one, I wil use this opportunity to re-initiate a short position on the stock
- Dougherty & Company raises their GPRO tgt to $65 from $55. Tuesday's earnings report delivered the desired results and added to their conviction. GoPro has established itself as one of the most valuable brands in consumer technology and has significant headroom to grow as it expands overseas and extends the brand to new device categories.
- Oppenheimer notes GoPro beat 1Q15 guidance and consensus with good execution and followed it up with even stronger guidance, implying 7% Q/Q growth for 2Q15 at guidance mid-point. GoPro also announced its acquisition of Kolor, a virtual reality software and content provider, which they believe is a must-have strategy for the future of action videos. They applaud the company's success in growing internationally in EMEA. However, they continue to believe their negative thesis holds—the long-term TAM is limited (especially vs. Street expectations) and it shows in their model as they see growth decelerating in 2015 holiday season; Underperform.
- Northland Capital raises their GPRO tgt to $76 from $70 -- they believe the market opportunity is significantly larger than investors currently understand
- Piper Jaffray raises their GPRO tgt to $66 from $55
- Citigroup to $56 from $48
- GPRO +12% at near 3 month high above $52.50 premarket.