Piper Jaffrays Weighs in on GoPro Inc (GPRO) and FitBit Inc (FIT) Following Amazon Comparison

Analyst Erinn Murphy of Piper Jaffray weighed in today on GoPro Inc (NASDAQ:GPRO) and FitBit Inc (NYSE:FIT) after comparing their performance to Amazon. The analyst expressed bearish sentiment on GoPro, citing price cuts due to high inventory levels, potentially endangering its Q4 margins. However, she changes her tone on Fitbit due to temporary discounts and its top rank in Amazon’s sport and fitness category.

Murphy states, “For GoPro, we have continued to see material pricing pressure not just to the HERO Session, but to other core models. While this has helped to modestly lift rankings, we believe the company is still working to clear inventory which will likely come at the expense of margin. On average, GoPro’s blended pricing is ~20% below September levels.” She continues, “We remain positive on FIT and see strong conversion throughout the holiday season. While pricing has been down 5-10% range over the past weeks, recall Fitbit doesn’t fund discounting outside of Black Friday. More importantly, we have seen Fitbit materially rise in the rankings. The brand now makes up seven of the top-ten items in its category for a blended rank of 13 vs. 40+ rank prior to Black Friday.”

The analyst reiterated her Underweight rating on GoPro with a $15 price target, while reiterating her Overweight rating on Fitbit with a $60 price target.

According to TipRanks’ statistics, out of the 16 analysts who have rated GPRO in the last 3 months, 8 gave a Buy rating, 2 gave a Sell rating, while 6 remain on the sidelines. The average 12-month price target for the stock is $33.17, marking a 73% upside from where shares last closed.

GPRO Consensus

Out of the 11 analysts on TipRanks who have rated FIT in the last 3 months, 9 gave a Buy rating while 2 remain on the sidelines. The average 12-month price target for the stock is $51.18, marking a 78% upside from where shares last closed.

FIT Consensus

  • Christian DeLoach

    Why should anyone listen to what Erinn Murphy has to say? Up until September she was bullish on GPRO, telling people to buy. Now she leads the bears. On May 19, she was on CNBC when GoPro was trading at above $50 saying it was undervalued. “We still think it’s undervalued. We think this is a brand that has significant potential it’s not just about selling those capture devices it’s really about documenting and sharing content and that’s something we think GoPro has a tremendous amount of competency and really authenticity in creating this space.” On June 10, when shares were trading at near $60, she stated “In our view, the consumer brand affinity for GoPro is underappreciated by investors and nicely positions the company for both product extensions and media monetization further down the road. We remain highly confident in our estimates for this year and believe they will prove conservative.”

    Take a look at Erinn’s Tip Rank (https://www.tipranks.com/analysts/erinn-murphy). She is currently ranked near last; ranked #3,579 out of 3,696 analysts (#8,077 of 8,453 overall experts). “If you copied Erinn Murphy’s ratings since 2009 and opened each position for the duration of 1 Year, then 32% of your transactions would have been profitable with an average return of -10.7%.” How she still has a job and why anyone listens to her I’ll never know.