GoPro Investors: Piper Jaffray Introduces New Amazon.com Sales Strength Index

In a report published Monday, Piper Jaffray analyst Erinn E. Murphy maintained an Overweight rating on GoPro Inc GPRO, with a price target of $66, after introducing the Proprietary PJC Amazon Relative Strength Index. This proprietary index was used to track the "relative strength of GoPro's offering" at the retail level. The index tracked the performance of five GoPro action camera devices that rank among the top 100 electronics items sold via Amazon.com, Inc. AMZN, since October. "Currently, we believe sell-through momentum is as strong as it has been since the month after the Fall 2014 launch of the new HERO line and see strong evidence of GoPro expanding the action camera market," analyst Erinn E. Murphy said. Overall, GoPro's current offering captures a 6.1 percent share of the Amazon top 100 electronics. This compares with the historic average of 4.6 percent, and is marginally short of the all-time peak of 6.7 percent. "We believe our index tells a GoPro story of strong replenishment among core users and rapid adoption among new users as the market broadens," Murphy added. GoPro's rank accelerated since the beginning of the second quarter. "As such, we are increasingly confident our Q2 and FY15 estimates appear conservative," the report mentioned. Indirect sales via distributors accounts for 41 percent of the company's revenue. "In addition, we estimate Amazon alone accounts for a mid-single digit to high-single digit percentage of GoPro revenue," Murphy pointed out.