Vertical Group Starts GoPro (GPRO) at Sell

July 10, 2014 8:04 AM EDT
Get Alerts GPRO Hot Sheet
Price: $8.98 -2.18%

Rating Summary:
    6 Buy, 9 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 19 | New: 35
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Vertical Group initiated coverage on GoPro (NASDAQ: GPRO) with a Sell rating and a price target of $28.50.

Analyst Robert Lopez said, "GoPro’s shares have appreciated ~ 80% following the recent IPO, and present valuation, in our view, credits GoPro handsomely for a Content Monetization initiative we deem fraught with risks, while concurrently ignoring both decelerating Revenue Growth and a range of competitive threats we deem salient."

"We believe GoPro’s Sports Camera market growth is slowing and competitive threats are tangible and mounting, directionally similar / identical to the concerns which plagued Apple’s shares from CY ’10 to CY ’12, despite Apple enjoying substantial Revenue growth over this duration," he added. "Our Fair Value assumes GoPro’s shares trade for 25x our CY ’15 NG EPS estimate, yielding our initial Fair Value of $28.50."

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 $43.30 yesterday.

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