GoPro (GPRO) PT Lifted to $65 at Dougherty & Co; Starting to Capture International Opportunity
Dougherty & Co analyst Charles Anderson reiterated a Buy rating and boosted his price target on GoPro (NASDAQ: GPRO) to $65.00 (from $55.00) following solid Q1 results and outlook. The analyst notes the company begins to capture the international opportunity.
Anderson commented, "We upgraded GoPro last month on the premise that the company was set up for a beat-and-raise near-term, had plenty of runway to grow internationally medium-term and would extend its brand to new categories long-term. On that basis, Tuesday's earnings report delivered the desired results and added to our conviction."
He added, "GoPro's Q115 revenue/EPS of $363MM/$0.24 bested our $340MM/$0.17 and Q215 guidance of $380MM-$400MM/$0.24-$0.26 was well above our $345MM/$0.15. GoPro will get a seasonal lift from June quarter holidays ("Dads and Grads")."
The analyst also noted the company is benefitting from international expansion. Sales in the EMEA region were up 74% YOY in Q115 and management suggested that Asia-Pacific sales would grow faster than EMEA in Q215 thanks to expansion into China and Japan, among others.
In terms of product development, GoPro served up the ultimate "tell" by announcing the acquisition of Kolor, a French company specializing in software for "spherical" video. It seems obvious to to them that GoPro is off to work on a device that will let users capture spherical video.
Anderson said if there was a negative, it would be that GoPro is probably going to spend more on OpEx than they thought based on management's rhetoric.
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Shares of GoPro closed at $47.02 yesterday.