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Pacific Crest Raises Estimates for GoPro Inc (GPRO) and Ambarella Inc (AMBA); Here’s Why

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Pacific Crest analyst Brad Erickson weighs in on action-camera maker GoPro Inc (NASDAQ:GPRO) and drone maker Ambarella Inc (NASDAQ:AMBA). The analyst sees bright future for GoPro’s new Hero 5 “basic” model, and sees compelling opportunity in Ambarella as drones are expected to invaded the skies this holiday season. Subsequently, the analyst raises his estimates for both companies. Let’s take a closer look.

GoPro Inc

Pacific Crest’s Brad Erickson provides insight on shares of GoPro after his checks have revealed there will now be a three new camera SKU holiday lineup, likely to be released with a Hero 5 “basic version.” Originally, the analyst previously anticipated the lineup as just two, now predicting the amplified SKUs “should boost channel fill,” and act as a catalyst for improved elasticity.

While Erickson raises estimates on back of this finding, he reiterates a Sector Weight rating on GPRO without listing a price target, while “waiting to see reception on new cameras and drone before becoming more constructive on the name.”

The analyst holds off on “judgment based on how GoPro’s installed base responds,” but notes Karma does not look promising as, “drone specialty store feedback indicated a relative lack of interest for GoPro’s...


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