UPDATE: Wedbush Upgrades GoPro (GPRO) to Outperform, Believes Growth Drivers are Firmly In Place

Wedbush analyst Michael Pachter upgraded GoPro (NASDAQ: GPRO) from Neutral to Outperform, PT $13.50 (from $11.00).

The analyst comments "The basis for our upgrade is three-fold: 1) there are multiple gross margin expansion drivers in place, including GoPro’s ongoing shift toward DTC sales domestically, growth of its high-margin subscription service, and a product mix-shift toward high-end hardware; 2) GoPro was a stand-out in Q3 among consumer electronics in that it got ahead of supply chain issues and component shortages, and did not show any material negative impact in Q3. We expect this to continue through the holiday and in 2022; and 3) upcoming catalysts include the resumption of international travel which should drive unit sales higher, while GoPro appears poised to expand its hardware into derivative products with specialized use cases to expand its user base, with only marginal R&D and manufacturing costs."

For an analyst ratings summary and ratings history on GoPro click here. For more ratings news on GoPro click here.

Shares of GoPro closed at $10.66 yesterday.

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