NEW YORK (TheStreet) -- Shares of GoPro (GPRO) - Get GoPro, Inc. Class A Report are decreasing by 0.13% to $15.24 in after-hours trading on Monday, as Barclays believes the company's presentation on virtual reality showed encouraging signs at the Consumer Electronics Show last week.
GoPro is based in San Mateo, CA and produces mountable and wearable cameras and accessories.
"Any significant monetization of virtual reality for GPRO is much further in the future but attending CES this year certainly made the opportunity seem much more tangible to us," the firm said according to Barron's.
The content the firm viewed on the Oculus Rift headset was very compelling and GoPro will remain at the forefront in providing content for virtual reality, Barclays added.
"Based on the products we saw walking the floor, we think a more realistic camera for filming VR content is likely sooner rather than later," the firm said.
Barclays also liked the prospects for simplifying video editing for GoPro users after seeing the demo for the company's new desktop software that is still being built.
Barclays has an "overweight" rating and a $25 price target on the stock.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate GOPRO INC as a Sell with a ratings score of D. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GPRO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 72.78%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- Net operating cash flow has significantly decreased to $4.62 million or 90.16% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income increased by 28.6% when compared to the same quarter one year prior, rising from $14.62 million to $18.80 million.
- 48.51% is the gross profit margin for GOPRO INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.69% trails the industry average.
- GPRO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GPRO has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
- You can view the full analysis from the report here: GPRO