Why GoPro Stocks Got A Buy Rating?

Analyst at Raymond James have reiterated a Buy rating on GoPro stocks

According to the investment company Raymond James, in a recent research note that has been given to investors and clients have actually given GoPro Inc. stocks a bullish rating. Mr. Travis McCourt analyst has clarified that the revelation of the data by Google Trends clearly indicates that the search terms of GoPro, the action camera giant does not really adhere to the decline in sales of the company.

Mr. McCourt on the other hand has associated this decline to a year over year anomaly of data that has been in accordance to the IPO results that are extremely higher than the search related comparables in FY14. Apart from that, the sales and ownership of GoPro products has also seen an upward trajectory that is a positive sign for them. Moreover analyst at Raymond James also believes that the company’s entry into the drone business is an optimistic growth sign for the company. This is because many consumers are actually very interested in this domain.

Previously in May, Nick Woodman the chief executive officer of GoPro Inc. has announced that the firm is currently working on a “quadcopter” that is likely to hit the market in FY16. Apart from this, the CEO also talked about a camera rig that will have a six sided spherical rig that will ensure the development of content featuring augmented reality. Both these products are likely to be launched parallel to each other. Moreover, they are also working on their cloud software domain which is in its alpha phase currently.

Considering all these prospects, the company has reiterated an outperform rating on the company’s stock with a price target of $63. This bullish approach on GoPro stocks is relatively recent since previously it gave a market perform rating to them in April.

According to Raymond James, this is the breaking point for GozPro to expand its services in the complimentary goods market. Mr. McCourt further stated, “Kolor demonstrates the potential for GoPro to ultimately move beyond its current form factor capture devices and to leverage its substantial brand to create new product markets or enter existing markets within the video capture category."