- Analyst Brad Erickson increases Q4 unit estimates given "better-than-feared sell-through" from 1.9M to 2.1M and recalculates slightly higher for ASP expectations.
- Notes store checks indicating impressive pivot to Karma Grip once it became evident Karma would not be available. Removes Karma fully from Q4 estimates.
- Projects 150K drone shipments contributing $88M in revenue for 2017.
- Further: "Our checks indicate that GoPro exited the quarter with a healthy 7-8 days of inventory at Best Buy in the United States with sell-through having sustained periods of significant growth through the quarter. One quarter does not make a trend, and regarding the return to growth, we note that GoPro was lapping an abysmal 4Q15 when sell-through was 40%-50% below ship-in. However, for those harboring hopes of a turnaround, it is a start."
- Considers $9-$10 (current price $10.39) fair value for GoPro (NASDAQ:GPRO) shares. Maintains Sector Weight.
- N.B. Ambarella (AMBA +3.4%)