JPMorgan Recommends Buying GoPro (GPRO) Into Q2 and New Product Cycle

JPMorgan analyst Paul Coster reiterated an Overweight rating and $17 price target on beaten-down GoPro (NASDAQ: GPRO), telling clients to buy the stock heading into the new product cycle despite and into Q2, which should meet or beat low expectations.

"We expect GoPro to post 2Q results that meet or beat low expectations, to reiterate full year revenue guidance, and to provide constructive commentary regarding introduction of the next Hero product family, shipments of which should start in late September," Coster commented. "We therefore expect an earnings inflection in 4Q16, so an earlier return to net profit in 3Q would be a positive surprise."

He added, "We think GPRO can work as a trade on the long side heading into 2H, spurred by Omni, Karma and Hero5 product introductions, but sustainable appreciation will depend on whether the new-product features and pricing can potentially reactivate y/y sales growth; and year-round profitability; unfortunately the 2Q call is unlikely to be the forum in which new product details are released. That said, we like the set-up here, against elevated investor skepticism (36% of the float is short) and recommend buying GPRO into the 2Q print."

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 $10.90 yesterday.

You May Also Be Interested In

• Super Micro Computer (SMCI) Falls 6%
• American International Group (AIG) PT Raised to $89 at Piper Sandler
• Prysmian SpA (PRY:IM) (PRYMY) PT Raised to EUR53 at HSBC