GoPro Inc (NASDAQ:GPRO) $20 Target Affirmed

GPRO is doing well in sales and growth but for now it is simply over valued.

Our $20 target on GPRO has been affirmed after the companies latest performance GoPro Inc. (GPRO) reported a profit for its third quarter that climbed compared to the same period last year.

The company said its bottom line climbed to $36.63 million, or $0.25 per share. This was up from $17.96 million, or $0.12 per share, in last year’s third quarter.

Analysts had expected the company to earn $0.29 per share, according figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company said revenue for the quarter rose 43.0% to $400.34 million. This was up from $279.97 million last year.

GoPro Inc. earnings at a glance:

-Earnings (Q3): $36.63 Mln. vs. $17.96 Mln. last year.
-Earnings Growth (Y-o-Y): 104.0%
-EPS (Q3): $0.25 vs. $0.12 last year.
-EPS Growth (Y-o-Y): 108.3%
-Analysts Estimate: $0.29
-Revenue (Q3): $400.34 Mln vs. $279.97 Mln last year.
-Revenue Change (Y-o-Y): 43.0%

GOPRO INC A closed up 1.980 at 30.210. Volume was 76% below average (consolidating) and Bollinger Bands were 75% narrower than normal.

Open High Low Close Volume___
28.620 30.670 28.420 30.210 2,100,907

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 29.12 34.94 46.79
Volatility: 57 77 72
Volume: 6,035,138 10,310,065 7,503,278

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

GOPRO INC A is currently 35.4% below its 200-period moving average and was is in an upward trend until the earnings news. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GPRO.O at a relatively equal pace (neutral) and reversing (Bearish) after earnings. Our trend forecasting oscillators are currently bearish on GPRO.O and have had this outlook for the last 0 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is normally bullish divergence, however the Gap down in the premarket also makes this Bearish..

GoPro, Inc., incorporated on August 24, 2011, produces mountable and wearable cameras and accessories, which the Company refers to as capture devices. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. Its capture devices are sold through retailers, wholesale distributors and on the Company’s Website.

The Company offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO. The HERO4 cameras capture video and photos in a small, easy-to-use form factor. The HERO4 cameras has waterproof housing and select mounting accessories, and have built-in Wi-Fi, providing connectivity with a smartphone or tablet to enable remote control and content viewing and sharing functionality. The Company also offers the HERO, HERO3 White, HERO3+ Silver and HERO4 Silver and Black editions. It also sells accessories for cameras and enables its customers to self-capture from different viewpoints. In addition to its packages, the Company offers the HERO4 Black edition camera in music-and surf-specific bundles. The Company also offers accessories, including Battery BacPac, Smart Remote and liquid crystal display (LCD) Touch BacPac for cameras.

The Company offers a selection of mounts designed to enable consumers to capture content while engaged in a range of activities. This includes equipment-based mounts, such as the helmet, handlebar, roll bar, as well as grip and tripod mounts. It also enables customers to wear mounts on their bodies, such as wrist housing, chest harness and head strap. The mounts are backward-compatible with HERO, HERO2, HERO3 and HERO3+ cameras. The Company also offers other accessories, which include spare batteries, charging accessories, cables to connect GoPro cameras to television monitors, video transmitters and external microphones, flotation devices, dive filters, anti-fogging solutions and accessories for the Smart Remote.

The Company provides two software applications: GoPro Studio and GoPro App. GoPro Studio is a video editing tool that allows users to create videos from their GoPro content. GoPro Studio includes GoPro Edit Templates, which are based on video productions and enable users to produce videos using their own footage. GoPro Studio’s additional features include playback and trimming of video clips; frame rate and image quality adjustments; conversion of time lapse photos into videos; slow motion and speed ramping tools, and the ability to export videos for Web sharing.

The GoPro App allows users to control their GoPro cameras remotely using a smartphone or tablet. Its features include control of all camera settings; content preview and playback directly from the camera on a smartphone or tablet, and access to GoPro’s Photo of the Day, Video of the Day and content feeds. The GoPro App enables users to wirelessly copy footage from their cameras to mobile devices for storage and sharing without a computer. GoPro Channel content can also be viewed on smartphones via the GoPro App.

The Company competes with Canon Inc., Nikon Corporation, Olympus Corporation, Polaroid Holding Corporation and Vivitar Corporation, JVC Kenwood Corporation, Panasonic Corporation, Samsung Electronics Co., Sony Corporation, Toshiba Corporation and Garmin Ltd.

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