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GoPro (GPRO) Stock Continues to Climb, Near Top ?

goproGoPro (GPRO) , the maker of action cameras, continually climbed 1% in Friday’s trading although in a recent report, the newly public stock was called overvalued by JPMorgan. In one day, this consumer electronics company, based in San Mateo, California, hit a record high of $82.40, the same number stocks closed at.

GoPro (GPRO) , which finally went public on June 26 at just $24.00, experienced advances for six consecutive days. Since its IPO, stock has seen an increase of about 238%. However, as stated by Paul Coster, analyst with JPMorgan, the company is definitely trading above fair value although hyper-growth is possible as the company moves into a large total available market. Based on his viewpoint, GoPro’s stock is rated as neutral with a target price of $54.00.

In conducting checks with retail stores, Coster found that GoPro has been dealing with sold-out products throughout the quarter. According to him, this indicates that demand is greater than supply is for the company’s cameras. However, he adds that stock outs could also signal the company working with a small amount of inventory as it gets ready to introduce new product in time for the upcoming holiday season.

Coster also states that even though GoPro has a number of long-term prospects, in the near term stocks will probably be somewhat volatile. GoPro (GPRO) has an IBD Relative Strength rating of 99, which means the company outperformed 99% of all other stocks. In addition, GoPro (GPRO) will be added to the Russell 2000 Index in late September, which is designed to measure the performance of the US equity universe small-cap segment.

Along with providing consumers with high quality products, many experts feel GoPro’s climbing success has to do with publicity in the form of YouTube videos. In the second quarter of this year, the number of videos rose 160% from the same quarter last year. According to a spokesperson for GoPro, the minutes that people watched the videos also increased, to more than 270%.

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