Oppenheimer's GoPro Upgrade: More Than Meets The Eye

GoPro Inc (NASDAQ: GPRO) shares are rising during Monday's pre-market trading off the back of an upgrade from Oppenheimer.

According to analyst Andrew Uerkwitz, the action camera maker went from an Underperform rating to a Perform. Not exactly a demonstration of über-bullishness, Oppenheimer does not hold a price target on GoPro, and still holds what it calls a "long-term negative bias," which the firm says is "stronger than ever."

The upgrade is based on upgrade shipment growth as GoPro enters new markets.

Oppenheimer notes five key points GoPro investors need to watch:

• Branding Power: GoPro "will generate substantial appeal to first time buyers in under-penetrated markets such as EMEA, and some parts of Asia."
• Industry Headwinds: "Although we see pockets of niche markets growing despite overall decline, we believe convenience of mobile handsets will trump standalone recording devices in the long-term."
• Product, Product, Product: "We view GoPro camera seriously lagging in terms of hardware/ software user interface, services, and technological capabilities."
• Near-Term Growth: "GoPro's current revenue composition, when compared with other major consumer electronics, proves that there is substantial potential for Y/Y unit shipment growth in the near-term."
• Bottom Line: "[T]he addressable market for GoPro's cameras is limited, if not shrinking under competition (drones)...GoPro's lack on product expertise will prevent the company from delivering long-term growth."

After an initial spike, GoPro shares have lost a bit of their gains on Monday morning, and last traded at $50.30.