Thursday’s Market Insights: GoPro Inc (GPRO), Oracle Corporation (ORCL)
GoPro Inc (NASDAQ:GPRO) shares rose nearly 13% this morning, after the action cameras maker announced a restructuring plan and updated near-term financial targets. GoPro revealed that it plans to cut 270 more jobs as part of cost-cutting measures that also affects programs and other expenses to “preserve our product roadmap.” The firm is now forecasting revenue on the high end of its guidance, and profitability on an adjusted, or EBITDA, basis in 2017.
Oppenheimer analyst Andrew Uerkwitz commented, “We are very encouraged by GPRO management’s restructuring plan (announced earlier than we expected), which we viewed as essential to preserve itself for the long term. We believe this is only the first of many steps it will take to reshape products and operations to potentially thrive in the rapidly changing image capturing market.”
Out of the 12 analysts polled by TipRanks (in the past 3 months), 6 rate GoPro stock a Hold, while 6 rate the stock a Sell. With a downside potential of nearly 4%, the stock’s consensus target price stands at $8.06.
Oracle Corporation (NYSE:ORCL) shares are up 8% to $46.53 in Thursday’s trading session, after the business software giant reported solid fiscal third-quarter results, hiked its quarterly dividend by 27%, and reiterated its goal of growing EPS at a double-digit rate in FY:18.
In reaction, Canaccord’s Richard Davis increased his price target from $45.00 to $49.00, while reiterating a Buy rating on ORCL. The analyst commented, “Large-cap value stocks like Oracle tend to move like ocean liners – once momentum starts in one direction, the stock continues to steam ahead in that direction for a while. To describe Oracle as valued “about right” on a multiple basis simply puts the stock in line with about 90% of the software universe – stocks have moved a lot and valuations are no longer obviously inexpensive. Oracle, as it always does, spoke bullishly about its push into IaaS to counter Amazon and for now investors are believers. Thus, we believe the stock could see another ~10% upside before running out of steam.”
Out of the 18 analysts polled by TipRanks (in the past 3 months), 12 are bullish on Oracle stock, while 6 remain sidelined. The stock’s consensus target price stands at $46.67.