Why TubeMogul May Be The Way To Play GoPro's Video Licensing Portal

GoPro Inc GPRO shares closed up more than 7 percent after the company unveiled a premium content licensing portal, aimed at monetizing video produced by GoPro users.

Aside from the company itself, another beneficiary from the news was TubeMogul Inc TUBE, which gained 4.4 percent on Monday. TubeMogul is a digital video ad company based in California that went public almost exactly a year ago.

According to Albert Fried analyst Rich Tullo, TubeMogul is one potential beneficiary from GoPro's decision to license content. Assuming the move will improve the quality of video ads -- which could boost the number of people who view the content online -- that's a positive for the company. "Increased traffic for video in general is very good for TUBE," Tullo wrote in a note to clients.

In May, Tullo reiterated an Overweight rating on TubeMogul with a $21 price target. The stock traded at $15.42 then -- now it's near $15.87.

At the time, he explained his bullish thesis:

"We think new programmatic opportunities such as: Out of home advertising, Linear TV Ads , and new Ad Agency relationships have the potential to drive TUBE's spend above forecasts....We suggest, as advertisers shift from traditional buying to Programmatic buying TUBE may benefit..."

JP Morgan, BMO Capital, JMP Securities, Citigroup and RBC all hold equivalents of Buy ratings on the stock.