GoPro bulls are convinced that the second half of the year will bring about a strong recovery, particularly as they expect great things from the upcoming Karma drone and from the HERO 5 camera. However, not everyone is convinced that a turnaround is coming.
GoPro coverage initiated at Neutral
In a report dated June 14, Longbow Research analyst Joe Wittine initiated coverage of GoPro Inc (NASDAQ:GPRO) with a Neutral rating. He noted that there is a possibility for things to turn around in the second half of the year, but he doesn’t believe there’s enough visibility to warrant the confidence some analysts and investors have in the company.
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He thinks sell-through has so far continued to decline by 5% to 10% in the second quarter, and he thinks GoPro’s cameras are “already great,” so he believes it will be extremely difficult for the company to innovate enough to convince people to upgrade, similar to what’s happening in the smartphone industry. He describes his general bias on action cameras as “slightly negative” and explains that saturation is already high.
Further, he said it’s difficult to