Shares of san Mateo-Calif.-based GoPro were gaining 2.6% to $42.61, extending the stock's advance to 36%.
"GoPro may be able to do for POV video content creation what Apple's (AAPL_) iPod + iTunes did for music consumption," wrote Barclays in an analyst report published Monday led by Joseph Wolf. Although the comparison to Apple may be a bit weighty, the Barclays analogy does underline the high-hurdle GoPro needs to jump to become a lasting global brand rather than simply a fad fueled by the "selfie-generation."
JPMorgan, in a report led by Paul Coster, placed a 12-month price target of $51 on GoPro based on the notion that the "active-lifestyles market" has sales volume in the tens-of-millions while GoPro has only shipped 8.5 million cameras to date. JPMorgan cites the uncertainty of GoPro's hold on a nascent market as a reason for the volatility in the stock.
Piper Jaffray analyst Sean Naughton initiated coverage of GoPro with a 12-month price target of $48, proclaiming that GoPro's growth will come from expanding beyond the action-sports community and that "38% of GoPro owners in our survey own more than one capture device, suggesting sales need not flat-line as penetration rises."
In order to prevent competition from overtaking GoPro, the camera maker will need to expand successfully into a media sharing company by integrating the content capturing device with their social media platform for sharing.
GoPro raises a lot of questions for analysts and investors because of the uncertainty of the market's growth, applicable valuation metrics, and whether GoPro can successfully fulfill its plans to become a media company rather than just a gadget maker. Nonetheless, the company is profitable, says JPMorgan's Coster, and sales remain brisk.
In order to prevent competition from overtaking GoPro, the camera maker will need to expand successfully into a media sharing company by integrating the content capturing device with their social media platform for sharing.
GoPro raises a lot of questions for analysts and investors because of the uncertainty of the market's growth, applicable valuation metrics, and whether GoPro can successfully fulfill its plans to become a media company rather than just a gadget maker. Nonetheless, the company is profitable, says JPMorgan's Coster, and sales remain brisk.
Source:http://www.thestreet.com
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