In a research report released Wednesday, Cowen analyst Robert Stone reiterated an Outperform rating on shares of GoPro Inc (NASDAQ:GPRO), while reducing the price target to $60 (from $76), which implies an upside of 80% from current levels.
Stone explained, “Cautious commentary by supplier AMBA (NR) and a slower-than-expected start for the HERO4 Session now look well discounted. We believe competitive concerns are overblown (GoPros remain top-ranked on BestBuy and Amazon). Our new $60 PT (vs. prior $76) reflects a higher discount rate in our DCF.”
Furthermore, “We believe GPRO can strengthen investor confidence and the competitive position if it continues to execute on: new software and services, content and licensing, and the H1:16 drone launch. A differentiated software ecosystem in particular could help build a moat around the hardware. We raised our DCF discount rate from 11% to 12%, reflecting a more unsettled market and global macro backdrop.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Robert Stone has a total average return of -13.7% and a 32.2% success rate. Stone has a -44.0% average return when recommending GPRO, and is ranked #3694 out of 3766 analysts.
Out of the 18 analysts polled by TipRanks, 13 rate GoPro stock a Buy, 4 rate the stock a Hold and 1 recommends a Sell. With a return potential of 108%, the stock’s consensus target price stands at $69.36.