GoPro's Stock Rallies After Analyst Upgrade

GoPro Inc.'s stock rallied 2.7% in premarket trade Friday, after analyst Paul Coster at J.P. Morgan Chase upgraded it to overweight from neutral, saying the recent sharp price decline makes it more attractive. Coster kept his stock price target at $70, which is 17% above Thursday's closing price $60.05. He said that while there is some near-term risk associated with the lock-up expiry on Dec. 23, in which over 15 million shares will be available for sale, the price decline and positive fundamentals have created a favorable risk-versus-reward profile for the shares. Coster said potential positive catalysts include stock-outs during the holiday season, strong fourth-quarter results, upward revisions to next-quarter estimates and international expansion. The stock has dropped 23% so far in December, and 36% since closing at a record high of $93.85 on Oct. 7.

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