The takeover chatter around this company has become incessant. GoPro Inc. (NASDAQ: GPRO) develops and sells cameras, drones and mountable and wearable accessories in the United States and internationally.
The company offers the following:
- HERO7, a cloud-connected line of cameras
- Fusion, a waterproof spherical camera
- GoPro Plus, a cloud-based storage solution that enables subscribers to access, edit and share content
- Quik, a mobile editing app, as well as desktop app for editing options for power users
- GoPro App, a mobile app that allows users to preview and play back photos and videos, control GoPro cameras and share content
- Karma Grip, a handheld or body-mountable camera stabilizer that capture zero-shake smooth video
GoPro also offers customers mounts and accessories, such as equipment-based mounts for the helmet, handlebar and roll bar and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, chest harnesses and head straps. GoPro markets and sells its products through retailers and wholesale distributors, as well as through its website.
The $7 Oppenheimer price target is well above the $4.83 consensus target. GoPro stock slipped below $4 last week.
Hewlett Packard Enterprises
Shares of this spin-off from a Silicon Valley legend hold solid upside potential. Hewlett Packard Enterprise Co. (NYSE: HPE) consists of these four segments:
- Hybrid IT (provides servers, storage, data center networking and Pointnext brand services)
- Intelligent Edge (enterprise networking and connectivity for campus and branch environments, operating under the Aruba brand)
- Financial Services (enables flexible IT consumption models)
- Corporate Investments (including HP labs and business incubation projects)
Last month, the company delivered a strong beat on the top and bottom lines due to strong execution on backlog and improving demand. BofA Securities views reinstatement of guidance as a net positive, indicating better visibility and improving trends. The stock remains inexpensive relative to peers.
BofA Securities has set a large $15 price target on Hewlett Packard Enterprises stock. The consensus target is $11.26, and shares have traded mostly between $9 and $10 since June.
This very aggressive tech play could have upside above the Morgan Stanley target. Zynga Inc. (NASDAQ: ZNGA) is a leading developer of mobile and social games. In the company’s relatively short history, it has developed a broad portfolio of games that includes several on Facebook and several top-grossing mobile apps. Key franchises include FarmVille, Zynga Poker, Hit It Rich Slots and Words With Friends.
Snap announced last year that it was expanding its partnership with Zynga to release new titles on Snap’s gaming platform. The partnership may expand Zynga’s reach to a younger demographic, though the near-term revenue opportunity is likely not impactful to Zynga. Content investment commitment from Zynga an indication of strong engagement and a very solid long-term opportunity.
Morgan Stanley’s $11.50 price target is just below the $11.61 consensus target. Zynga stock traded below the $9 level recently.
Most investors are familiar with these companies, and shares of all five have been sent to the single-digit midget penalty box. Some of these companies may have a difficult road back to prosperity, but given what we have seen in the past, and the massive liquidity Washington, D.C., has provided, the odds are good that each survives this downtown.