GPRO - GoPro leaps as Wedbush observes multiple growth drivers

GoPro (GPRO +7.8%) shares rise after Wedbush upgrades the stock to Outperform from Neutral citing multiple growth opportunities. "There are multiple gross margin expansion drivers in place, including GoPro's ongoing shift toward DTC sales domestically, growth of its high-margin subscription service, and a product mix-shift toward high-end hardware," writes analyst Michael Pachter. He believes GoPro's stand-out performance in overcoming supply chain challenges will continue into 2022. Pachter notes upcoming catalysts that include the resumption of international travel and GoPro's expansion into "derivative products with specialized use cases to expand its user base" that should incur only minimal R&D and manufacturing costs. Of the analysts covering GoPro, 2 hold Buy-equivalent ratings, 3 are Neutral, and 1 is Bearish.

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GoPro leaps as Wedbush observes multiple growth drivers