Tuesday’s Analyst Insights: GoPro Inc (GPRO), Apple Inc. (AAPL) and Alibaba Group Holding Ltd (BABA)

GoPro Inc

In a research report released today, Piper Jaffray analyst Erinn Murphy reiterated an Underweight rating on shares of GoPro Inc (NASDAQ:GPRO), with a $6.50 price target, after GoPro’s Chief Financial Officer Brian McGee participated in a “fireside chat” Q&A session at the 36th Annual Piper Jaffray Consumer Conference.

Murphy wrote, “Overall, the room (albeit physically larger than last year’s room) was part full, just not to the same level as we have seen in the past. The company indicated they continue to work through inventory; however, they did mention that channel inventory at Q2 end should be down 35% (vs. their down 35-50% range) and they are doing a little “bit more sell-in than they anticipated.” The company continues to anticipate gross margin to improve sequentially each quarter from Q1’s adjusted 36% rate. GoPro will continue to invest in the business vs. repurchase shares when asked about capital allocation.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Erinn Murphy has a yearly average return of -6.8% and a 40% success rate. Murphy has a -6.4% average return when recommending GPRO, and is ranked #3758 out of 3971 analysts.

Out of the 14 analysts polled by TipRanks, 6 rate GoPro stock a Buy, 8 rate the stock a Hold and 2 recommend a Sell. With a return potential of 26%, the stock’s consensus target price stands at $12.07.

Apple Inc.

After attending Apple Inc.’s (NASDAQ:AAPL) WWDC keynote in San Francisco, Drexel analyst Brian White weighed in with a few insights. This was Apple’s twenty-seventh WWDC and focused entirely on software and services, announcing dozens of new features for its MacBook, iPhone, Apple TV and Apple Watch.

White noted, “As expected, Siri was the star of the event with Apple opening up third-party apps for development and Siri finally coming to the Mac. With iOS 10, Apple opened up Siri to third-party developers with SiriKit, a big move that allows for the development of apps around personal payments, workouts, phone calls, messaging, photo search, ride booking and for CarPlay apps.”

“In our view, Apple’s expansive digital matrix across software, services and hardware, that delivers a seamless experience to an installed base of 1 billion devices, will continue to differentiate Apple from its mobile device competitors. We find it virtually impossible for Android-based competitors to ever create a digital matrix that rivals “Planet Apple”,” the analyst added.

White reiterated a Buy rating on AAPL with a price target of $185, which represents a potential upside of 90% from where the stock is currently trading.

According to TipRanks.com, analyst Brian White has a yearly average return of 8% and a 56% success rate. White has an 18.7% average return when recommending AAPL, and is ranked #132 out of 3971 analysts.

The overwhelmingly majority of analysts still say Apple is a Buy. The average forecast is for the stock to hit $125 in the coming months.

Alibaba Group Holding Ltd

Baird analyst Colin Sebastian came out today with a few takeaways from Alibaba Group Holding Ltd’s (NYSE:BABA) first Investor Day, a roughly 11-hour event that covered high-level strategic goals as well as segment specific overviews. In addition, the company guided to revenue growth for 2017 of 48%+ Y/Y vs. current consensus of 39% growth, sending shares up 3% as of this writing.

Sebastian wrote, “Overall, the Investor Day reinforces our positive long-term view of Alibaba, as an “asset-light” marketplace and technology platform, poised to benefit from ongoing secular growth trends in China in online retail and cloud services. While several overhangs remain, such as the recent SEC investigation, we note that management reiterated that they follow GAAP accounting rules, and hope that additional transparency in the business will put investors at ease.”

Sebastian reiterated an Outperform rating on Alibaba’s stock, with a price target of $94, which represents a potential upside of 21% from where the stock is currently trading.

According to TipRanks.com, analyst Colin Sebastian has a yearly average return of 14.4% and a 65% success rate. Sebastian has a 0.6% average return when recommending BABA, and is ranked #42 out of 3971 analysts.

As of this writing, all the 16 analysts polled by TipRanks (in the past 3 months) rate Alibaba stock a Buy. With a return potential of 31.31%, the stock’s consensus target price stands at $99.07.

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