UPDATE: Pacific Crest Initiates Coverage On GoPro, Significant Upside Is Currently Unfavorable

Courtesy of Benzinga.

Pacific Crest Securities initiated coverage on GoPro Inc (NASDAQ: GPRO) in a report issued Tuesday with a Sector Perform rating.

Analysts Brad Erickson and Andy Hargreaves noted that "despite our bullish view of GoPro's brand and slight upside bias to forecasts, we believe upside and significant optimism and future media monetization opportunities appear largely priced in at current levels."

Erickson commented that "with such a premium built in, we view GPRO's risk/reward of significant further upside at current levels as relatively unfavorable.

"Our scenario analysis gives GoPro credit for hitting more than 10 million units by 2020 with $200 million of media revenue and 25 percent operating margins, which implies a share price of $73 when discounted back," according to the report.

GoPro has fallen 19 percent in the past five days. Other analysts have also struggled with GoPro’s valuation.

GoPro Inc recently traded at $72.54, down 3.4 percent.

Posted-In: Brad Erickson Pacific Crest SecuritiesAnalyst Color Initiation Analyst Ratings