GoPro stock has declined over 50% from its 52-week high, largely due to the fear about rising competition in the action camera market. But the San Mateo-based company has received two bullish research reports in the last two days, and analysts believe that GoPro is far ahead of the competition. On Thursday, Robert W. Baird & Co analyst William Power upgraded the stock from Neutral to Outperform rating.

GoPro Inc Has Significant Lead Over Competition

GoPro is a ‘category killer’

Baird has a price target of $57, which is based on 33x PE multiple on FY2016 EPS. The research firm said that GoPro’s brand and its wide distribution network provide significant differentiation. Power said the company was still in early stages of penetrating the action sports category. The research firm said it has taken a “conservative” approach to GoPro’s valuation by not including potential media revenue or a new product category. These may provide further upside to the stock.

Baird expects GoPro’s revenue to jump 23% in 2015 and 20% in 2016. William Power estimates GoPro’s earnings to rise 27% in 2016. Separately, FBN Securities analyst Shebly Seyrafi reiterated his Outperform rating on the stock with $75 price objective. Seyrafi said GoPro was a “category killer.” FBN Securities believes GoPro stock has hit the bottom and is set to go up.

GoPro offers superior image quality

Chinese smartphone maker Xiaomi’s recently launched Yi Action Camera, which costs just $64, may pose a threat to GoPro as it expands internationally. But FBN Securities says the U.S. company has little to worry about as it offers far superior image quality. The San Mateo-based company sold 5.2 million action cameras in 2014, compared to 90 million cameras and camcorder sold in the same period. Analysts believe there are still hundreds of millions of adventure enthusiasts around the world, reflecting a huge addressable market.

GoPro is currently working on its next-gen action camera Hero 5, which is expected to hit the stores in October. According to media reports, the new action camera will record ultra-high definition 4K videos at 60 frames per second, double the frame rate of its predecessor. It is also expected to have a bigger 2,800mAh battery.

GoPro shares inched up 0.39% to $43.40 in pre-market trading Friday.