GoPro Slips: Street Shrugs at New ‘Hero6,’ ‘Fusion’; No Mass Appeal?

科技动态 2017-09-29

Shares of adventure camera maker GoPro
(GPRO) shares continue to trade down despite a raft of PR yesterday for new products at an event in San Francisco, including the “ Hero6
” camera, and “ Fusion
,” a $700 camera capable of “5.2K” video capture in 360 degrees.

GoPro stock is down 35 cents, or 3%, to $11.13, after yesterday’s 2% drop.

The response thus far from the Street is muted. The bears — and they’re almost all bears — seem to appreciate product features, but see little impact to financials.

Sure, it’s awesome, but it’s not for everyone
,” writes Alicia Reese
with Wedbush, reiterating her Neutral rating on the stock, and $10 price target.

“There is no question the Hero6 will get initial orders,” she writes, “but we question its mass appeal."

The prices
, in particular, seem beyond the reach of the average buyer, notes Reese:

GoPro announced three new products at its event on Thursday, including HERO6 ($499), the Karma-HERO6 bundle ($1,199), and Fusion ($699). The HERO6 and Karma are available immediately while Fusion will launch in November. The HERO6, priced $100 higher than HERO5, has added features including 2x FPS compared to HERO5, plus improved stabilization and much faster content transfer to mobile devices. The improved specs will appeal to the GoPro enthusiast, but the average consumer will likely opt for the HERO5 or competitor cameras given its high price.

Company will Her conclusion is the company will beat Q3 expectations, perhaps delivering $325 million in revenue versus consensus for $311 million, because “GoPro has the flexibility to sell-in product,” however, she remains “skeptical” of its intent to return to profitability.

Raymond James’s Tavis McCourt
reiterates a Market Perform rating, noting that "the event was short and to the point
, which is in keeping with the tone the company has been aiming for over the last year or so."

He notes the Fusion will go up against something called " Virb 360
” from Garmin
(GRMN). While Virb costs $799, it “has comparatively more powerful features” than the Fusion. That includes “5.7K” video resolution in the case of Virb, and a “4k 30” "spherical resolution” versus just 3k for the Fusion.

McCourt notes that this is the first time that Veritone has made its own chip
to power the Hero series of cameras, called the “GP1,” adding it “marks the first time GoPro has developed a video processing chip in-house."

Cowen & Co.’s Robert Stone
, who has a Market Perform on the stock, raises his price target to $10.50 from $9.50. The company has better “execution,” it looks to him, compared to mishaps last year. But, that "was already factored into guidance."

He notes “management is targeting much lower year-end channel inventory, to avoid an overhang,” and concludes that "likely limits 2017 upside potential."

Stone expects 2018 will be “ smoother
,” with just 6 to 7 weeks of channel inventory, down from 14 to 15 last year.

“However, single-digit 2018-19E top-line growth and sub-5% net margins aren't enough for us to get constructive on the shares."


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