GoPro (GPRO) Remains Neutral Rated at Dougherty

Dougherty & Co maintained a Neutral rating on GoPro (NASDAQ: GPRO). Comments follow a visit to company headquarters. Analyst Charlie Anderson said he would prefer an entry point in the stock at lower multiple. He also discussed its new holiday display at Best Buy.

"We believe GoPro has established itself as one of the most valuable brands in consumer technology and has significant headroom to grow as it expands overseas. That said the post‐IPO move in the stock has priced in outstanding performance as GPRO trades at 42x our FY15 EPS estimate of $1.02. In terms of an entry point, we would prefer a multiple in the high 20s or low 30s. Our sense is that the path to getting there is more likely to be higher estimates than the stock trading down to those multiples. So we will revisit our stance if we gain confidence in higher estimates," said Anderson.

"Last week, we visited GoPro’s headquarters in San Mateo and met with management. We also visited a Best Buy store in downtown San Francisco that is a test store for GoPro’s holiday 2014 POP display. Our takeaways were: New POP display (seen at Best Buy) will hold 43% more cameras, over 2x the accessories, and have over 2x the video signage. After seeing the display inperson, we believe it is more impactful than the existing display and should help GoPro sell significantly more cameras this holiday. We also believe the display will create more pull for GoPro accessories as they are featured prominently."

Anderson went on to say post‐holiday momentum may come from new products and/or categories, and international expansion remains a work‐in‐progress.

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 $43.29 yesterday.

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