GoPro Shares Surge 12% After Bullish Analyst Notes

GoPro Inc. shares surged 12% in premarket trade Wednesday, as analysts weighed in with bullish comments on the company's quarterly earnings posted late Tuesday. Raymond James upgraded the stock to outperform from market perform. "We now expect 25% EPS growth to persist through at least 2016 as the product line broadens and the GoPro ecosystem grows," analysts wrote in a note. Northland Capital Markets cheered a "very strong quarter". "We believe the company is building a healthy franchise by simplifying how users capture, manage, edit and share images," they wrote. GoPro beat profit and revenue estimates and reported a gross margin of 45.1%, a full 110 basis points above its own long-term target of 42% to 44%. Shares have fallen 25.6% in the year to date, while the S&P 500 has gained 2.7%.