Action camera maker GoPro (GPRO) is a mover and shaker out on the Street today, with investors sparking the stock on an almost 5% upturn. Why the excitement? The company got a vote of confidence from Oppenheimer’s Andrew Uerkwitz, who upgraded the stock from Perform to Outperfom while setting a $9.00 price target, which implies a 25% upside from current levels.
GoPro unveiled its lineup of new products on Thursday, launching just ahead of this year’s all-important holiday shopping season. Uerkwitz believes this year’s products are quite compelling. Based on product reviews, a new marketing strategy, and for the first time, GoPro has a new product for each price point, the analyst sees a stronger than usual replacement cycle.
Uerkwitz stated, “GoPro has never had competitive issues. Its stock depreciation has largely been self-inflicted or moonshots that didn’t land. It’s arguably been left to the scrap heap. We believe it’s worth a second look based on the set-up and management’s turnaround efforts […] By the end of 2018, sell-through for the year is likely to be ~5M. Sell-in is likely to be ~4.2M units. Moreover, GoPro is likely to exit December several weeks below normal inventory levels. With the new products, clean channel, and potential inventory replenishment, 2019 should be the year GoPro returns to growth.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Andrew Uerkwitz has a yearly average return of 20.8% and a 64% success rate. Uerkwitz has a 9.6% average return when recommending GPRO, and is ranked #158 out of 4883 analysts.
However, the Street does not share this optimism — quite the contrary. Right now, GoPro stock has a Hold analyst consensus rating with only 1 Buy rating. This is versus 6 Hold and 2 sell ratings. Meanwhile, the 12-month consensus price target stands at $6.19, which implies a downside potential of nearly 14% from the current share price. (See GPRO’s price targets and analyst ratings on TipRanks)