NEW YORK (TheStreet) -- Shares of GoPro (GPRO) are rallying after research firm JMP Securities initiated coverage of the stock with an Outperform rating and a price target about 50% above the stock's current level. GoPro develops image capturing products and related solutions.
WHAT'S NEW: Noting that GoPro has sold more than 8.5M motion capture devices, JMP Securities analyst Alex Gauna wrote that GoPro has a "durable" brand and a total market opportunity of more than $70B. The company's early entry into its markets, along with its financial advantages, will enable it to generate additional revenue from many sources, Gauna stated. More specifically, the company can compete effectively in New Media, Internet advertising, fitness devices, and connected wearable products, according to the analyst. Meanwhile, GoPro has room to increase its revenue from its core "action capture" market, wrote the analyst, who initiated coverage of the stock with a $60 price target and Outperform rating.
WHAT'S NOTABLE: Last weekend, Barron's published a cautious article on GoPro, saying that the company's cameras could lose their competitive advantage once wearable mounts for smartphones are perfected.
PRICE ACTION: In early trading, GoPro jumped $2.80, or 8%, to $39.70.
Reporting by Larry Ramer.