Oppenheimer Releases a Hold Rating on GoPro

By Austin Angelo

In a report released today, Andrew Uerkwitz from Oppenheimer reiterated a Hold rating on GoPro (NASDAQ: GPRO). The company’s shares closed yesterday at $7.35, close to its 52-week low of $7.15.

Uerkwitz said:

“GoPro announced a restructuring plan and updated near-term financial targets post close on 3/15. The company plans to reduce 2017 GAAP opex to below $585M by cutting 270 full-time positions (17% of its employee count as of December 31, 2016). Management expects 1Q17 revenues to be about $210M. It reiterates its focus on profit and expectation to be profitable for the full-year 2017 for non-GAAP EBITDA and non-GAAP net income. Management maintains that the cost reduction plan will not hurt new product rollout in 2017 and near-term revenue outlook. We view the plan as an essential survival tactic for the next 18 months as GoPro continues an evolution toward the right strategies to adapt to markets heading in unfavorable directions.”

According to TipRanks.com, Uerkwitz is a 4-star analyst with an average return of 6.0% and a 55.1% success rate. Uerkwitz covers the Technology sector, focusing on stocks such as Activision Blizzard, Tower Semiconductor, and Himax Technologies.

Currently, the analyst consensus on GoPro is Moderate Sell and the average price target is $5.67, representing a -22.9% downside.

In a report released today, Stifel Nicolaus also reiterated a Hold rating on the stock with a $9 price target.

The company has a one year high of $17.68 and a one year low of $7.15. Currently, GoPro has an average volume of 4M.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is neutral on the stock. Last month, Michael E. Marks, a Director at GPRO sold 30,000 shares for a total of $276,300.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.