GoPro Inc. (NASDAQ: GPRO) shares gained early during pre-market hours on Wednesday after an analyst turned bullish on the camera maker, according to a report by MarketWatch. GoPro shares were trading 10% higher shortly before the opening bell.
Oppenheimer analyst Andrew Uerkwitz iterated a bullish turnpoint for GoPro, citing his optimism surrounding the Company’s new product launches and a new focused strategy.
Uerkwitz raised his rating to outperform from perform as well as raising his price target to USD 9, representing a 36% upside to Tuesday’s closing price.
Last week, GoPro unveiled a new Hero7 camera with a built-in gimbal to eliminate shakiness in video footage. The Hero7 Black’s “Hypersmooth” video stabilization offers consumers a more professional-like footage recording that’s built in already.
“With compelling features such as live streaming and gimbal-like image stabilization, we believe the products are compelling,” Uerkwitz wrote in a note to clients. He said the products should be enhanced by targeted marketing and a “vastly improved” software editing suite. “In summary, overlooked GoPro should be a buy,” Uerkwitz wrote.
In the second quarter, GoPro reported revenue of USD 283 Million, which declined by 5% year over year, but increased 40% quarter over quarter with a non-GAAP net loss of USD 21 Million or adjusted EPS loss of USD 15 cents.
Despite reporting year over year declines in both revenues and earnings, GoPro topped analysts’ estimates. Analysts had forecasted GoPro to report a 9% declined in revenue and adjusted EPS loss of USD 22 cents.
Founder and Chief Executive Officer Nick Woodman also gave investors reassurance after he said that the Company is “on track” and will be profitable in the second half of the year.
For the third quarter, GoPro forecasted revenue between USD 260 Million and USD 280 Million. Analysts forecast revenue of USD 263.6 Million.
GoPro shares have fallen 12.55% this year, underperforming against the S&P 500’s gain of 9.05% gain this year.