Wednesday Morning Pre-Market Insights: GoPro Inc, Ambarella Inc, Walt Disney Co
GoPro Inc (NASDAQ:GPRO) is down 6.84% in pre-market trading to $40.70 after it was rated by analyst Erinn Murphy of Piper Jaffray. Although the analyst reiterated an Overweight rating on the action camera company, she cut her price target from $72 to $54 due to results in Ambarella’s report released yesterday afternoon. Murphy reminded investors that “Ambarella is a key supplier of video compression and image processing semiconductors for GoPro.” Although AMBA beat The Street’s estimates, future guidance noted that wearables cameras will decrease from this quarter. Murphy added, “More importantly, this commentary suggests that there is a very low likelihood of a HERO5 launch this year. On the positive, flying camera revenues are accelerating–a positive indicator for the overall category as GoPro makes its foray 2016.”According to the 15 analysts polled by TipRanks in the last 3 months, 12 are bullish on GoPro and 3 are neutral. The average 12-month price target is $76, marking a 75% potential upside from where shares last closed.
Click here to see Erin Murphy’s past rating history and performance.
Ambarella Inc (NASDAQ:AMBA) is down 9.72% in pre-market trading to $80.90 after the chip manufacturer reported second quarter earnings yesterday afternoon, beating Wall Street expectations but posting a grim forecast for the next quarter. The company posted non-GAAP EPS of $0.88, beating the analyst estimate of $0.80 and up from the $0.37 posted in the same quarter of last year. Likewise, AMBA posted quarterly revenue of $84.2 million, beating the analyst estimate of $81.7 million and marking a nearly 80% increase from the same quarter a year prior. However, CFO Laplante noted in the conference call that he expects Q3 revenue derived from wearable cameras to be flat. He commented, “The unusual line number of new product launches we are experiencing in Q2 have historically occurred in our third fiscal quarter.” Laplante also guided 3Q revenue between $90 million and $93 million. According to the 10 analysts polled by TipRanks in the last 3 months, 5 are bullish on the stock and 5 are neutral.
Walt Disney Co (NYSE:DIS) is up 1.03% to $100.53 after CLSA initiated coverage on the company, rating it an Outperform with a $114 price target, marking about a 15% potential upside from where shares are currently trading. CLSA is optimistic about Disney due to revenue from its films and consumer products licensing. This bullish rating comes as welcomed news to the company as many analysts have turned bearish on the stock after it released third quarter earnings on August 4. Although Disney beat earnings in its last report, it missed expectations for quarterly revenue. Up until this earnings report, Disney shares had been climbing up to a one-year high of $122.08. However since earnings, shares have slipped and are now hovering around $100. Aside from CLSA’s new coverage on Disney, TipRanks has polled 19 analysts on Disney in the last 3 months. Of these analysts, 9 are bullish on Disney and 10 are neutral