Wedbush Maintains Outperform On GoPro, $70 Price Target

Courtesy of Benzinga.

In a report published Wednesday, Wedbush analysts maintained their Outperform rating on GoPro Inc (NASDAQ: GPRO) as well as the $70 price target. The company has outperformed the Street expectations in every quarter since it became a publicly traded company four quarters ago.

GrPro posted 1Q15 revenues ahead of the guidance, estimates and consensus, driven by a 58 percent increase in units shipped. HERO4 Black and HERO4 Silver accounted for more than 50 percent of the revenue and units. The company reported its international growth higher than its domestic growth.

GoPro issued its initial guidance for 2Q15 above the Street expectations. While the analysts have significantly increased their FY15 estimates for the company, they expect continued growth in FY16, especially if GoPro introduces a new product line or if it is able to “more effectively monetize its entertainment efforts,” the analysts said.

While international expansion could also prove beneficial to the company, its product roadmap is unclear at present. “Although it is reasonable to expect another line of GoPro action camcorders to launch later this year, we have no information about the company’s plans,” Wedbush added.

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