This has been another roller-coaster stock and it could be offering a sweet entry point. GoPro Inc. (NASDAQ: GPRO) had a super-hot IPO last year but has been all over the place since. The company develops hardware and software solutions to help consumers in capturing, managing, sharing, and enjoying engaging recorded content. The company offers HERO line of capture devices, such as cameras; premium accessories, including battery BacPac, smart remote, and LCD touch BacPac accessories; and mounts, comprising equipment-based mounts.
Cowen sees the company as not only the market leader in it specific arena, but the company expanding the product line it pioneered with a range of new devices that should appeal to sports enthusiasts and families. The firm also thinks that the new software should drive ease of use, while content licensing drones and virtual reality will be a boost for long-term growth.
Cowen initiates the stock with an Outperform rating and a $75 price target. The consensus target is $76.54. The stock closed Thursday at $59.50.
This company is facing ever more competition, but it continues to hold its own. Pandora Media Inc. (NYSE: P) is clearly not the only company with a big desire to be in the music streaming business, but it is the current leader in installation and use in the automotive world, with a penetration rate right at 70%, and it hopes to stay that way.
Cowen points out that while the webcasting royalty hearings at the Copyright Royalty Board (CRB) and the associated rulings are still up in the air. While not binding toward the judge’s decision, the upcoming mid-September ruling could include the Merlin deal as a market rate transaction as the three judges determine final per track rates in mid-December. The Merlin rates are expected to be very close to what Pandora currently pays and below what the Sound Exchange is asking for. This huge stock overhang, when removed, could provide investors big upside.
Another plus for the company is the revenue potential from its new Sponsored Listening ad unit, which is set to be rolled out in the third quarter. Pandora’s ad unit allows the listener to take advantage of one hour of ad-free music streaming by listening, viewing and interacting with an advertisement from a brand that sponsors the ad-free hour.
The Cowen price target is posted at $23, and the consensus target is $21.86. The shares closed on Thursday at $18.57.
Some new, and some old and established. All these tech companies have a unique niche, as well as market leading capability. For aggressive investors, they all could be solid additions to a growth portfolio with a long-term horizon.
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