GPRO another -7% slam, Citi defending with $94 target, currently $53

In a report published Tuesday, Citigroup analyst Jeremy David reiterated a Neutral rating and $94.00 price target on GoPro Inc (NASDAQ: GPRO).

In the report, Citigroup noted, “After our CES meeting with GoPro CFO Jack Lazar last week, we wrote that Lazar had stated margins on the $130 HERO device were ‘significantly below' corporate average. While we continue to believe this is the case – see below for our analysis – we are amending the statement to read that Lazar only confirmed that the HERO is a lower price point, lower cost capture device. Nonetheless, our BOM analysis implies that the BOM on the $130 device is likely no less than ~$90, implying a gross margin of 23% assuming an ASP to GoPro of ~$117 (i.e., a 10% retail margin), about 20 points below the corporate average.”

GoPro closed on Monday at $56.78.

Submitted January 13, 2015 at 12:29PM by StockJock-e http://ift.tt/1suRaLU