Piper Jaffray Slices GoPro (GPRO) PT to $55 Posts Q4
Piper Jaffray analyst Sean Naughton reiterated a Neutral rating and lowered his price target on GoPro (NASDAQ: GPRO) to $55.00 (from $90.00) following Q4 results.
commented, "GoPro reported impressive Q4 results driven by strong performance across the business. Reported adjusted EPS of $0.99 compared to consensus of $0.70 as revenue increased 75% and gross margin expanded 600bp, both on a year-over-year basis. Unit sales jumped 68% and each region saw revenue increase at least 69%. However, the stock's reaction looks to be more driven by Q1 guidance that was more lackluster and the resignation of COO Nina Richardson. We are reducing our price target to $55 based on 30x FY16 EPS of $1.83. Maintain Neutral rating, but do think the shares have an opportunity to increase from the $46 in the after market."
The firm bumped FY 2015 EPS from $1.23 to $1.45 and FY 2016 EPS from $1.50 to $1.83.
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Shares of GoPro closed at $54.37 yesterday.