Oppenheimer’s Insights: Analysts Weigh In on GoPro Inc (GPRO), Fitbit Inc (FIT) and Paypal Holdings Inc (PYPL)

Oppenheimer analysts weighed in with a few insights on active camera maker GoPro Inc (NASDAQ:GPRO), wearable fitness device maker Fitbit Inc (NYSE:FIT), and online payment giant Paypal Holdings Inc (NASDAQ:PYPL). Below are the comments along with current ratings and price targets from lead analysts Andrew Uerkwitz and Glenn Greene. Let’s take a closer look:

GoPro Inc

While Oppenheimer’s Andrew Uerkwitz believes that GoPro’s strategy is moving in the right direction and sees signs of improvement in supply chain, he remains sidelined.

Uerkwitz wrote, “We believe that GoPro shares have established their near-term bottom following the impact of a weak product cycle in 2015 and ensuing channel inventory issues. In the next three months, we expect improving investor sentiment and major product launch to provide GPRO sufficient tailwinds to outperform its peers in the upcoming earnings season. We see improving supply chain data points to support near-term improvement in GoPro inventory pressure. In the fall, GoPro will release new cameras which are long overdue for updates. Despite the positive short-term outlook, our long-term view on GoPro has not changed yet. We maintain that the structural decline of the camera market will be difficult to overcome unless GPRO continues to make marked improvements with user experience.”

Uerkwitz reiterated a Perform rating on shares of GoPro, without providing a price target.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a yearly average return of 6.2% and a 53% success rate. Uerkwitz has a 10.6% average return when recommending GPRO, and is ranked #489 out of 4055 analysts.

Out of the 21 analysts polled by TipRanks, 6 rate GoPro stock a Buy, 13 rate the stock a Hold and 2 recommend a Sell. With a return potential of 4%, the stock’s consensus target price stands at $12.88.

Fitbit Inc

Uerkwitz took the other route, reiterating an Outperform rating on shares of Fitbit, with a price target of $25, as he believes that this quarter could provide the “green shoots” needed for a strong stock recovery into 2H16.

The analyst opined, “As FIT continues to trade at levels we think severely undervalue its earnings growth potential, we use this preview to address drivers that could get the name over the hump. It’s worth mentioning over the past 4 Qs, FIT has beaten consensus EPS by an average of 137%/Q. Yet in that same time period with mismatched guidance and expectations, the stock has fallen 54%. We believe this quarter, expectations are appropriately set. A second tailwind is expected with product launches (announcements as soon as 3Q). With 2Q marketing spend now past, 4Q is set up for leverage. With continued strong execution, we see 2H shaping up nicely.”

Out of the 24 analysts polled by TipRanks, 13 rate Fitbit stock a Buy, while 11 rate the stock a Hold. With a return potential of 68.5%, the stock’s consensus target price stands at $22.78.

Paypal Holdings Inc

With PayPal preparing to release second-quarter earnings on Monday, July 25, Oppenheimer analyst Glenn Greene weighed in today with his prediction.

Greene wrote, “Heading into 2Q16 earnings, we affirm our Outperform rating and $43 price target for PayPal. We initiated coverage of PYPL on June 16th, and remain attracted to the company’s unique digital payments assets (i.e., Braintree, Venmo, Xoom), nearly ubiquitous two-sided platform, and impressive growth profile. For 2Q16, PYPL expects revenue to grow 16-18% in constant-currency to a range of $2.57-2.62B, and adj. EPS in a range of $0.34-0.36. Based on Street estimates, we believe 2Q TPV and transaction revenue could surprise to the upside. Finally, we view the recent in-browser Apple Pay announcement as a relatively benign competitive development. At ~22x our FY17E EPS, we believe PYPL shares are attractively valued.”

Greene has a 81 percent success rate recommending stocks with a 21 percent one-year average return, according to TipRanks. Greene is ranked #2 out of 4055 analysts.

Out of the 40 analysts polled by TipRanks, 22 rate Paypal Holdings Inc stock a Buy, 15 rate the stock a Hold and 3 recommend Sell. With a return potential of 7.7%, the stock’s consensus target price stands at $42.23.


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