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MORGAN STANLEY: GoPro ‘must find new use cases’

CEO of GoPro Nick WoodmanDrew Angerer, Getty images

GoPro has struggled for years to bend out from a core movement camera segment, though analysts during Morgan Stanley see guarantee in a company’s new modifying software.

“The recently introduced QuikStories outlines solid swell in a right direction,” according to a investigate note by a group of Morgan Stanley analysts led by Yuuji Anderson. “But we consider it is still too early for GoPro’s program ecosystem to meaningfully pull incremental adopters to a movement camera category.”

The association has certified to blank a smartphone series as distant behind as 2014 and has been personification locate adult ever since. Luckily, Thursday’s gain were GoPro’s ninth kick in 13 quarters, with a reported detriment of $0.09 per share compared to estimates of a $0.25 loss.

“We trust that GoPro’s biggest event might be to offer as an untethered lens for a smartphone,” CEO Nicholas Woodman pronounced on a company’s gain call Thursday. “Central to this prophesy is a faith that GoPro is no longer only a camera, a standalone device. Now, with a seamless app experience, a GoPro is a absolute prolongation of a smartphone itself.”

QuikStories was launched late final month and lets users simply send video from their GoPro camera onto a smartphone for easier modifying and posting.

The app’s recover joined with another successful entertain led Morgan Stanley to adult a cost aim to $8.50, that GoPro fast blew past as shortly as markets non-stop Friday, reaching a $10.38 rise mid-morning.

But a bank warns that GoPro still has work to do. “Innovation has slowed and smartphones are good adequate for many use cases, that boundary incremental adoption of movement cameras. GoPro contingency find new use cases like drones and VR,” a analysts wrote.

“Continued swell in differentiating video modifying and pity capabilities swell is pivotal to unchanging product cycles in a prolonged term.”

Seth Archer contributed to this report.

Check out GoPro’s batch cost here.

Screen Shot 2017 08 04 during 12.44.29 PMMarkets Insider

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