Shares of GoPro Inc. rallied 3.6% in midday trade Thursday, putting them on course to close at a one-month high, after the wearable video camera maker was upgraded at RW Baird, which cited a strong growth outlook and relatively attractive valuation. Analyst William Power raised GoPro's rating to outperform from neutral. He expects sales growth of 20% and earnings-per-share growth of 27% in 2016, which he said makes the stock price at just under 25-times his 2016 EPS forecast, look attractive. Power also said he has not factored in any revenue from new product categories or media in his estimates, so anything extra could drive future upside. The stock has now gained 15% since closing at a seven-month low of $37.95 on March 9, but is still down 31% year to date. Meanwhile, the S&P 500 is up 0.1% so far this year.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below