GoPro (GPRO) Investment Summary

INVESTMENT OUTLOOK SUMMARY

GoPro is a BUY at the current price of $48.53,

given a 12 mo. future value of $83.97, or 73%

upside, based on a forward-facing PE ratio of 45,

a 5.92 P/S ratio, and based off of a forecast 32%

2015 revenue growth, versus a 71.6% 3- year

average growth.

COMPANY DESCRIPTION

GoPro focuses on the capture, management,

sharing, and enjoyment of compelling content.

The company has traditionally been the

manufacturer of the Hero line of wearable

cameras, and is transitioning to become a

broadcast media company through strategic

partnerships with content creators. GoPro made

its initial public offering in the summer of 2014.

UPSIDE TRENDS

GoPro marketing reached an estimated 31 million viewers, between the 2013 Winter X Games and

the 2014 NHL Playoffs Media, through a partnership with Vislink that allows the company to broadcast

live footage during sporting and exhibition events

GoPro social media engagement across platforms has increased 100%+ YoY, granting the company

free marketing, increasing user engagement and driving increased sales

70% YoY revenue growth EMEA and APAC opens up new markets to drive company expansion, as

the company shifts away from a distribution model towards a direct sales strategy

Market Demand for 4K Ultra HD devices will increase GoPro camera sales as it’s cameras are used

increasingly by professionals for broadcasting purposes such as TV, movies, news, etc.

GoPro exposure will increase dramatically through other partnerships with LG, Microsoft, Roku, and

Virgin America to display content and attract viewers

Introduction of the low-end Hero model in Q4 2014 allows the company to take advantage of non-

consumption and recreational users excluded by high prices of the Hero3 and Hero4 product lines

Increased brand awareness will allow GoPro to gain better traction in new verticals such as hunting

PROJECTED RISKS

Competition from local manufacturers as GoPro enters China threatens potential market share, although

the company’s brand equity is relatively inimitable

Possible lawsuits with competitors over intellectual property claims threaten the stability of the company

Projected 2015 Net Income 226,651$ Projected 2015 Net Income 226,651$ Avg. 12-month Price 83.97$

Shares Outstanding 125,780,000 Shares Outstanding 125,780,000 Current Price 48.53$

Projected 2015 EPS 1.80 Projected 2015 Rev/Share 14.67$ Upside 35.44$

Projected 2015 P/E Ratio 45 Projected 2015 P/S Ratio 5.92 % Upside 73%

Projected 12-month Price 81.09 Projected 12-month Price 86.86$

Valuation Analysis

Valuation - P/E Valuation - P/S Potential