Oppenheimer: GoPro To Hit Wall In 2015

GoPro Inc's GPRO head-mounted video camera is going to hit a wall next year amid growing competition and a limited market, an analyst said Friday. San Mateo-based GoPro gained nearly 13 percent Friday after beating third-quarter expectations and offering a promising year-end outlook. Its share value has nearly tripled since a June 25 initial public offering. But in a contrarian view, Oppenheimer's Andrew Uerkwitz said demand for GoPro's product is limited to those "interested in sharing their active lifestyle, or folks who enjoy a good video editing session" Although Uerkwitz thinks GoPro will turn in a bang-up holiday quarter, 2015 will reveal slowing growth. With the market for digital cameras and camcorders in decline since 2010, "it's hard to see longer term opportunities" for GoPro's products in North America and Europe, Uerkewitz said, maintaining a Hold and $45 target. If GoPro takes a serious swipe at the China market, local tech giants like Xiaomi and Huawei would "quickly respond with lower-priced, high-spec cameras, Uerkwitz said, citing Xiaomi's fast response to several smartphone products offered in China by Samsung. But Wedbush's Michael Pachter said the cameras, often sold to skiers and mountain bike riders, are aimed at a "nascent and rapidly growing addressable market." Pachter maintained an Outperform rating Friday and boosted his target to $98 from $81, calling GoPro "an early stage consumer brand with a long runway ahead of it."