NEW YORK (The Street) -- GoPro (GPRO) was surging Tuesday after a report by the technology-focused investment firm JMP declared that the wearable camera maker has yet to take advantage of a myriad of growth opportunities within an industry estimated as $70 billion.
Shares of the San Mateo, Calif-based image capture and sharing company were rising 5.4% to $38.83 as JMP initiated coverage of the stock with a $60 price target and a forecast that shares will outperform most equities.
GoPro can generate advertising revenue through its own GoPro YouTube (GOOG) Channel advertising as well as through content created with GoPro products such as its cameras and other camcorder accessories, JMP senior research analyst Alex Gauna said in a July 15 report.
"Our positive investment stance is predicated on the view that first mover and financial advantages will allow it to capitalize on a multitude of underpenetrated and/or untapped opportunities to monetize its technology and brand," Gauna wrote.
GoPro completed its IPO transaction on June 25 and, according to JMP, can growth revenue by 22% in 2014. Gauna expects another 22% revenue growth in 2015, thereby reaching $1.5 billion in sales and $2 billion in sales by 2016. Targeting action enthusiasts, GoPro develops and produces image capture and sharing technology. The company's products also include a YouTube Channel under the brand's name which scored the most hits among branded YouTube channels in the first quarter 2014. GoPro sold over 8.5 million motion capture devices and its YouTube channel reached more than 450 million views - channel views saw a growth revenue at a 149% compound annual growth rate from 2010 to 2013. GoPro won an Emmy for technical achievement, and is the U.S. market share leader in camcorders.
"We feel its market vision and execution have established GoPro as a durable multimedia and active lifestyle brand," Gauna wrote. -- Written by Kathryn Mykleseth in New York
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