Why GoPro, Inc. Stock Soared Today
Shares of GoPro Inc. (NASDAQ: GPRO) popped as much as 14.6% early Wednesday, then settled to trade up 7% as of 3:30 p.m. EDT after an analyst upgraded shares of the action camera specialist after it announced its first live-streaming camera.
More specifically, Oppenheimer's Andrew Uerkwitz increased his rating on GoPro to "outperform" from "perform." He also assigned a $9 per-share price target on the stock, representing a nearly 36% premium from yesterday's close.
To justify his relative bullishness, Uerkwitz argued that GoPro stock has "largely fallen off everyone's radar after several difficult years," but is "worth a second look" given its ongoing turnaround. To that end, recall GoPro shares surged following its most recent quarterly report in early August, when the company predicted new product launches would help it return to adjusted (non-GAAP) profitability in the second half of this year.
Regarding its latest camera line, which GoPro introduced at a launch event last week, Uerkwitz added, "With compelling features such as live streaming and gimbal-like image stabilization, we believe the products are compelling."
Uerwitz also echoed GoPro's prediction that it will return to top-line growth in 2019 -- a trend you can be sure investors will be watching closely when the company announces third-quarter 2018 results in early November. But given this vote of confidence from Wall Street in the meantime, it's no surprise to see GoPro stock climbing higher today.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends GoPro. The Motley Fool has a disclosure policy.