Analysts are weighing in on action camera giant GoPro Inc (NASDAQ:GPRO) and micro-blogging giant Twitter Inc (NYSE:TWTR). Here’s a quick roundup of recent brokerage notes on GPRO and TWTR.
In a research report issued this morning, Citigroup analyst Jeremy David downgraded shares of GoPro from a Buy to a Neutral rating and slashed the price target to $22 (from $75), admitting that he “got it wrong” when upgrading GPRO to Buy back in July. GoPro shares are currently trading at $18.20, down $0.63 or -3.35%.
David commented, “Further analysis of recent data points as well as the HERO4 Session price cut to $200 on Friday December 4th, CEO Woodman’s appearance on QVC on Saturday December 5th, and his comments at an investor conference on December 9th suggest demand for GoPro products is softening.”
Furthermore, “While we initially thought GoPro would recover from the poor HERO4 Session sell thru (initially attributed to poor marketing/ launch timing), we are becoming worried that the poor sell thru could be a reflection of diminishing consumer interest in new GoPro devices/ features that GoPro is introducing.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jeremy David has a yearly average return of -11.6% and a 37.5% success rate. David has a -44.4% average return when recommending GPRO, and is ranked #3273 out of 3638 analysts.
Out of the 15 analysts polled by TipRanks in the last 3 months, 7 rate GoPro Inc stock a Buy, 7 rate the stock a Hold and 1 recommends a Sell. With a return potential of 85.71%, the stock’s consensus target price stands at $22.91.
In addition, Axiom analyst Victor Anthony reiterated a Buy rating on shares of Twitter, with a price target of $36, after the company announced that it is testing ads on the logged-out user page, which is visited by more than 500 million people each month.
Anthony wrote, “Twitter called out logged-out monetization at the Analyst Day in 2014 and pointed to an “aspirational” $1.3B revenue opportunity if they could get an ARPU of $2.50, which was half Twitter’s annualized ARPU at that time. While the $1.3B was purely illustrative, we do think that monetizing logged-out users is an incremental positive for Twitter and we are quite frankly surprised they took one year to make good on that opportunity. If advertisers warm to the logged-out opportunity (risk is a lower quality user), then Twitter could see its O&O ad revenue re-accelerate (the 3Q15 deceleration is a key bear concern). Twitter’s ad blog noted that the test will be rolled out in the U.S., U.K, Japan, and Australia with more to come in the future and will support campaigns driving website clicks and conversions, initially.”
According to TipRanks.com, analyst Victor Anthony has a total average return of 14.7% and a 62.9% success rate. Anthony has a -10.0% average return when recommending TWTR, and is ranked #55 out of 3638 analysts.
Out of the 43 analysts polled by TipRanks in the last 12 months, 19 rate Twitter stock a Buy, 22 rate the stock a Hold and 2 recommend to Sell. With a return potential of 50%, the stock’s consensus target price stands at $38.82.