Citi Sees Weak Near-Term Results for GoPro (GPRO) But Says Concerns Priced In

Citi analysts are cutting near-term estimates on GoPro (NASDAQ: GPRO) but reiterated a Buy rating and $90 price target on GoPro (NASDAQ: GPRO), saying weak Q3 and Q4 results are largely priced in and HERO4 concerns create an attractive entry point.

The analysts noted that CFO Lazar confirmed at the firm's Global Tech Conf last week that GoPro's latest product – the HERO4 Session, launched 7/12 – has been off to a slow start. They believe investor concerns since then have led to a big drop in the share price.

The firm is reducing H2’15 and Q1’16 estimates due to downside from the HERO4 Session, but are leaving estimates post Q1’16 unchanged as they believe the long-term fundamentals of the company are intact.

The firm's 2016 and 2017 revenue and EPS estimates remain well above Street on their bullish view on flying cams and modest growth in the action cam category.

The analysts believe GoPro missing Q3 and guiding down Q4 is largely priced in, but they see no real upside until the Q4 guide resets the bar lower.

They continue to believe that GoPro is a LT beneficiary of flying cams and VR.

For an analyst ratings summary and ratings history on GoPro click here. For more ratings news on GoPro click here.

SI NOTE: This report was tagged as 'Hot Analyst Comments' at StreetInsider Premium given the actionability of the call. StreetInsider Premium members can see more under this category and be alerted to new posts here: http://www.streetinsider.com/Hot+Comments

You May Also Be Interested In

• Freedom Broker Upgrades IREN Ltd. (IREN) to Buy
• Lynx Equity on Lam Research (LRCX): 'Closing in on full valuation'
• Gerdes Energy Research Upgrades Sable Offshore Corp. (SOC) to Buy