Pacific Crest Reiterates a Hold Rating on GoProBy Carrie Williams
“We’re open to changing our view if our checks improve, but for now, we maintain that action cameras are largely saturated and see the shares as fairly valued between $9 and $10, consistent with our views since April. Q3 report was soft, Q4 guide is below the Street, 2017 looks optimistic. Ex- new product shipments in Q3, we estimate units were down between 40% and 50% y/y, and while those will improve in Q4, we think GoPro’s implied guidance of units being up potentially more than 15% could be optimistic. Further, we think the 2017 revenue outlook for double-digit growth assumes both camera growth and meaningful drone traction—this is plausible, but also optimistic, in our view. Ship-in has been down a combined 36% over the past four quarters, while our checks have found in-line Hero 5 demand and disappointing Session demand —hardly a sign pointing to y/y growth next year, in our view. Lowering revenue estimates; raising 2017 EPS estimates on forthcoming opex cuts. We are lowering our 2016 estimates largely on the Q3 unit miss and the drone delay, while our 2017 unit and ASP assumptions are largely unchanged, as is our revenue.”
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Currently, the analyst consensus on GoPro is Hold and the average price target is $12, representing a 0.5% upside.
In a report released today, Dougherty also reiterated a Hold rating on the stock.
The company has a one year high of $26.12 and a one year low of $8.62. Currently, GoPro has an average volume of 7.99M.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2016, Michael E. Marks, a Director at GPRO sold 264 shares for a total of $3,944.
GoPro, Inc. engages in manufacturing and selling camera and camera accessories. It provides mountable and wearable cameras and accessories, which refers as capture devices. The company was founded by Nicholas Woodman in 2002 and is headquartered in San Mateo, CA.