GoPro Inc (NASDAQ:GPRO), the maker of the most versatile action camera is expected to release its next generation capture device prior to the holiday season, according to analysts at Stifel based on their retail channel checks.

GoPro Inc to Release Hero 4 Black In Mid Of October

According to Stifel analysts Jim Duffy, Lolly Iarocci and Peter McGoldrick, the GoPro Hero 4 Black model would be available in mid-October for $499.95. The retail price of the action camera is higher compared with the $399.95 GoPro Hero 3+ Black edition.

GoPro Hero 4 Black October release matters

According to the analysts, the expected launch of the GoPro Hero 4 Black model prior to the holiday season is significant because it is “positive for 2014 revenue and earnings power” of GoPro Inc (NASDAQ:GPRO).

Duffy and his fellow analysts recalled that prior speculations regarding the product launch was set on mid-2015. The analysts also noted that no details around product specifications have been released yet. However, they believed that the rumored feature set on the new action camera was compelling enough to encourage passionate GoPro users and enthusiasts to upgrade their devices.

The analysts said, “We see room for upside to our 3Q and 4Q revenue estimates, driven by sell-in of Hero 4, and uptake of the new product from the enthusiast user base as well as the higher point of the product.”

Analysts’ recommendation

Duffy and his colleagues acknowledged the potential for a continued excitement around the shares of GoPro Inc (NASDAQ:GPRO) into the holiday season, but they recommended a Hold rating. They do not have a price target for the stock.

The analysts emphasized that their rating for GoPro Inc (NASDAQ:GPRO) is based on a longer-term view and assessment of a fair value for the company’s shares in a complex exercise.

The analysts explained that it was appropriate to consider a number of valuation methodologies such as straight comps, discounted cash flow, a sum-of-the-parts that values the media business opportunity independently and an assessment of the strategic value to potential acquirers.

Duffy and his colleagues concluded, “While each involves judgment and estimate subject to debate, our summary view is that, balanced against execution risks, there is insufficient upside potential to justify a Buy rating.”

The shares of the company are trading at $68.94 per share, up by nearly 1% at the time of this writing around 3:00 P.M. in New York.