J.P. Morgan analyst Paul Coster provided an update on GoPro Inc (NASDAQ:GPRO) after a fireside chat with CFO Brian McGee at the 36th Annual Piper Jaffray Consumer Conference. The analyst reiterated a Buy rating on the stock, with a price target of $17, which represents a potential upside of 63% from where the stock is currently trading.
Coster noted, “GoPro CFO, Brian McGee, presenting at a recent broker conference, advised that channel inventory may fall less than previously anticipated owing to strong sell-through and retailer re-orders. We believe this applies to both domestic and international markets. This may reflect the benefits of more marketing than this time last year, and a less cluttered product lineup.” The analyst continued, “The CFO mentioned that channel inventory will be down on the low end of the range at 35% y/y (guide 35-50%) owing to sell-in demand from retailers, as consumer demand is driving replenishment (Dads and Grads most likely a strong driver in our view). The Good-Better-Best strategy is working, coupled with payback on the marketing spend around the Session. ASPs are trending higher as the firm dropped the lower priced models as well.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Paul Coster has a yearly average return of -8% and a 43.5% success rate. Coster has a -45% average return when recommending GPRO, and is ranked #3774 out of 3976 analysts.
Out of the 21 analysts polled by TipRanks, 6 rate GoPro stock a Buy, 13 rate the stock a Hold and 2 recommend to Sell. With a return potential of 23%, the stock’s consensus target price stands at $12.88.