GoPro Shares Climb Higher After an Oppenheimer Upgrade

Shares of camera device maker GoPro were exploding after an Oppenheimer analyst said the stock was overlooked and a buy.

Shares soared as much as 14% on Wednesday after the “outperform” upgrade from the firm with a $9 price target.

According to Oppenheimer, GoPro is “worth a second look” and that the company’s live-streaming camera and turnaround strategy set GoPro to return to growth in 2019. The firm also says the stock has been largely “overlooked” after a rough 2017.

“With compelling features such as live streaming and gimbal-like image stabilization, we believe the products are compelling,” Oppenheimer said in its research note.

The firm argues that the company has “largely fallen off everyone’s radar after several difficult years.” GoPro however has a strategy to turn around and has reduced its inventory which Oppenheimer says was the “biggest headache” for the company in the last two years.

“GoPro has never had competitive issues. Its stock depreciation has largely been self-inflicted or moonshots that didn’t land,” Oppenheimer remarked.

But by continuing to reduce its inventory and launching these new products, Oppenheimer believes GoPro is set to return to growth next year.

Shares of GoPro have dropped almost 40% in the last year.

Disclaimer: We have no position in GoPro Inc. (NASDAQ: GPRO) and have not been compensated for this article.