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
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