The shares of GoPro are trading higher today after the company reported earnings that beat the expectations of Wall Street analysts.
GoPro also benefited from the positive recommendations and price target upgrades of several analysts. The company also announced its agreement to acquire Kolor, a virtual reality and spherical media solutions provider.
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The stock price of the company surged almost 13% to $53.04 per share at the time of this writing around 3:01 in the afternoon in New York.
Analysts raised PT for GoPro shares
Some analysts upgraded or reiterated their bullish stock rating and price target for the shares of GoPro after the company delivered better-than-expected earnings for the first quarter.
GoPro reported $0.24 in earnings per share on $363.1 million in revenue, higher than the $0.18 in earnings per share on $340.99 million in revenue expected by analysts.
Its strong financial performance prompted analysts including Travis McCourt of Raymond James to upgrade his rating for the shares of GoPro to Outperform with a price target of $63 per share.
According to him, the Kolor acquisition “demonstrates the potential for GoPro to ultimately move beyond its current form factor capture devices, and to leverage its substantial brand to create new product markets or enter existing markets within the video capture category.”
GoPro founder and CEO Nicholas Woodman said, “GoPro’s capture devices and Kolor’s software will combine to deliver exciting and highly accessible solutions for capturing, creating and sharing spherical content.”
On the other hand, Charles Anderson, an analyst at Dougherty & Co raised his price target for the stock from $55 to $65 per share. Piper Jaffray Erinn Murphy reiterated her Buy rating and increased her price target for GoPro to $66 per share.
Meanwhile, Wedbush analyst Michael Pachter maintained his Outperform rating for the shares of GoPro with a price target of $73 per share. According to him, GoPro remains the “undisputed king of action camcorders.”
GoPro launched HEROCast live broadcast transmitter
GoPro recently announced the launching of HEROCast, a live broadcast transmitter. The company described HEROCast as the smallest, lightest, and most cost-efficient wireless HD micro transmitter available in the broadcast market.
The HeroCast transmitter allows the professional broadcaster to deliver engaging, live content with immersive POV footage and unique perspectives. It integrates with GoPro cameras and its ecosystem of mounts. The HeroCast costs $7,500.