GoPro (GPRO) PT Cut to $6.50 at Piper Jaffray as KARMA Gets Bumped Back
Piper Jaffray analyst Erinn Murphy reiterated an Underweight rating and lowered her price target on GoPro (NASDAQ: GPRO) to $6.50 (from $7.00) following mixed Q1 results. Importantly, GoPro indicated it was delaying the launch of its drone, Karma. Karma will now launch in Holiday vs. 1H prior. The company will be coordinating its launch of Karma along with its HERO5 launch-- slated for Holiday.
Murphy commented, "While sales beat our estimate in Q1, gross margin missed and the company reported an LPS of ($0.63) vs. our ($0.61) estimate. Despite the sales beat, units were below our estimate. We note the company is pulling back on sell-in during 1H and expects inventory to be clean by Q2-end. Mgmt kept their FY guidance, which to us represents a high-bar and our estimates are now settling in before the low-end of guidance. We are reducing our FY16 sales estimate from $1.37B to $1.19B and our LPS estimate widens."
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Shares of GoPro closed at $10.71 yesterday.