GoPro (NASDAQ:GPRO) stock is rising higher on Monday thanks to a new upgrade and price prediction from Wedbush analyst Alicia Reese.
Let’s start out with the upgrade, which has the Wedbush analyst bumping shares of GPRO stock up to an outperform rating from the previous neutral rating. That’s above the analyst consensus of hold, which comes from two buys, one hold, and one sell rating.
To go along with that new rating is a price prediction of $13.50 per share for GPRO stock. That’s an increase over Reese’s prior price target of $11 per share. It’s also above the analyst consensus price target of $11.38 per share.
So what has the Wedbush analyst taking a bullish stance on GPRO stock today? There are a few reasons she believes that GoPro is looking for gains in the future.
First off, Reese believes the company has several gross margin expansion drivers that could result in major growth. That includes its switch to direct sales in the U.S., its growing subscription service, as well as putting out more high-end hardware. Plus, she expects it to do all of this while keeping R&D costs down.
In addition to this, the analyst notes that Q3 earnings for the company were strong. She sees this momentum to continue through the holiday season and well into next year, reports TheFly.com.
The new price prediction for GPRO stock is also translating to heavier-than-normal trading today. That has some 3 million shares on the move, which is already above the company’s daily average trading volume of 2.7 million shares.
GPRO stock is up 2.7% as of Monday afternoon.
There’s more stock market news for today to dive into below!
Traders looking for all the latest stock coverage today are in the right place! We’ve got all they need to know about Arena Pharmaceuticals (NASDAQ:ARNA), AEA-Bridges Impact (NYSE:IMPX), and Lucid Motors (NASDAQ:LCID) shares moving today. You can find that and more from the links below!
More Monday Stock Market News
- ARNA Stock Alert: The Pfizer Deal That Has Arena Pharmaceuticals Rocketing Today
- IMPX Stock Pops as Harley-Davidson’s Electric Motorcycle Division Preps to Come Public
- LCID Stock Just Joined the Nasdaq-100. What Does That Mean for Lucid Investors?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.