NEW YORK (TheStreet) - GoPro
(GPRO) was continuing its fast-paced ascent Monday as the point-of-view camera maker received more support from sell-side analysts that the stock has further room to rise following its successful public offering on June 27.
Shares of san Mateo-Calif.-based GoPro were gaining 2.6% to $42.61, extending the stock's advance to 36%.
"GoPro may be able to do for POV video content creation what Apple's (AAPL) iPod + iTunes did for music consumption," wrote Barclays in an analyst report published Monday led by Joseph Wolf. Although the comparison to Apple may be a bit weighty, the Barclays analogy does underline the high-hurdle GoPro needs to jump to become a lasting global brand rather than simply a fad fueled by the "selfie-generation."
JPMorgan, in a report led by Paul Coster, placed a 12-month price target of $51 on GoPro based on the notion that the "active-lifestyles market" has sales volume in the tens-of-millions while GoPro has only shipped 8.5 million cameras to date. JPMorgan cites the uncertainty of GoPro's hold on a nascent market as a reason for the volatility in the stock.
Piper Jaffray analyst Sean Naughton initiated coverage of GoPro with a 12-month price target of $48, proclaiming that GoPro's growth will come from expanding beyond the action-sports community and that "38% of GoPro owners in our survey own more than one capture device, suggesting sales need not flat-line as penetration rises."
In order to prevent competition from overtaking GoPro, the camera maker will need to expand successfully into a media sharing company by integrating the content capturing device with their social media platform for sharing.
GoPro raises a lot of questions for analysts and investors because of the uncertainty of the market's growth, applicable valuation metrics, and whether GoPro can successfully fulfill its plans to become a media company rather than just a gadget maker. Nonetheless, the company is profitable, says JPMorgan's Coster, and sales remain brisk.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV