GoPro's Stock Rallies After Analyst Says Company Would Be An 'interesting Acquisition' For Apple

GoPro Inc.'s stock ran up 4.4% in midday trade Monday, bouncing from the second-lowest close in its history in the previous session, after Northland Capital analyst Gus Richard said the wearable camera maker would make a "compelling acquisition target" for Apple Inc. GoPro's stock closed Friday at $32.42, after plunging 45% over the past month. That was the lowest close for the shares since its public debut on June 26, 2014, when it closed at $31.34. Richard said the stock's recent selloff has presented "a compelling entry point" for investors and companies, like Apple , seeking original content. "While how GoPro monetizes content is up in the air, it is adding unrecognized value to the franchse," Richard wrote in a note to clients. "Moreover, we think GoPro would be an interesting acquisition for Apple from both a hardware, software and content prospective." Richard said 2016 estimates for GoPro could be raised, because they don't currently include the benefits from sales of cameras used for drones. He expects up to 1 million drones will be bought as Christmas gifts this year, with about 80% likely to have a camera attached.