GoPro Inc (NASDAQ:GPRO) stock was on the rise Wednesday following an upgrade from Longbow Research.
Joe Wittine, an analyst for Lonebow Research, claims that GoPro Inc is preparing for a turnaround. In a letter that came out today, the analyst gave GPRO stock an upgrade from its previous rating to the current Buy” rating. He also has a price target of $13 for GPRO stock.
Wittine gives a few reasons as to why he believes its time to start buying GRPO stock. The analyst says that the camera company will see demand decrease by 8% over the next four quarters. However, he notes that a 16% increase in average sell price per unit will overcome this decline.
Joe Wittine also says that the company will perform better than Wall Street’s current estimate for the full year of 2018. He is estimating that the company will report revenue of $1.50 billion for the year. The consensus from analysts is pinning GRPO with revenue of $1.43 billion in 2018.
“Short-term, the stock can squeeze on quarterly beats, with 25% of GPRO’s float short, and long-term upside is possible through ongoing operational improvements, product innovation (Fusion, KARMA 2), and continued momentum internationally,” Wittine wrote in a letter obtained by Benzinga.
GoPro Inc will next report earnings on Nov. 1, 2017 after the markets close. Wall Street is expecting the company to report earnings per share of 2 cents on revenue of $312.60 million for the third quarter of the year.
GPRO stock was up 3% as of Wednesday morning and is up 10% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
