Raymond James Upgrades GoPro, Says Kolor 'Impressed'

In a report published Wednesday, analyst Tavis C McCourt of Raymond James upgraded GoPro Inc (NASDAQ: GPRO) from Market Perform to Outperform. The price target is set to $63. The upgrade follows the company's strong Q1 results and the acquisition of software company, Kolor.

GoPro reported 1Q15 revenues and EPS significantly above the estimates, with revenue growth of 54 percent and unit shipment growth of 58 percent. The company issued its June quarter guidance well ahead of the analyst's expectations, as well as above the seasonality witnessed in 2014. The analyst expects the company to report EPS growth of 25 percent at least through 2016, driven by growth in the company's ecosystem, and broadening of its product line.

Apart from posting huge success on social media platforms, the company has also entered into an agreement with Roku to develop live programming for its major networks, such as ESPN, as well as the GoPro channel.

According to Raymond James, the acquisition of Kolor "demonstrates the potential for GoPro to ultimately move beyond its current form factor capture devices and to leverage its substantial brand to create new product markets or enter existing markets within the video capture category."

Kolor is a software business that integrates 360® video views to create virtual reality experiences and for other applications.