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On Tuesday, Wedbush Securities adjusted its outlook on GoPro stock, lowering the price target to $0.75 from the previous $1.00, while maintaining a Neutral rating on the company’s shares. The stock, currently trading at $0.62, sits near its 52-week low of $0.40, having declined over 60% in the past year. According to InvestingPro analysis, GoPro appears undervalued at current levels. The action comes as GoPro focuses on returning to profitability by 2025, with a strategy that includes new higher-margin products and significant expense reductions.
GoPro has already transferred its U.S.-bound camera production from China, which is expected to mitigate the impact of tariffs in 2025, assuming there are no increases in tariffs from Thailand. The company’s current and anticipated product lineup for late 2025, combined with solid domestic retail demand and subscription service interest, supports its profitability goal. Wedbush forecasts a modest earnings per share (EPS) of $0.05 for the year, contingent on GoPro maintaining subscription retention and avoiding a double-digit decline in unit sales.
Despite GoPro’s efforts to protect against tariffs, the company is still vulnerable to currency fluctuations, which may continue to pressure margins through 2025. InvestingPro data reveals concerning metrics, including a 21% revenue decline and a weak financial health score, highlighting the company’s challenges. The firm recognizes GoPro’s precarious position but acknowledges the potential for the company to meet new expectations with its upcoming product offerings, including a delayed 360 model, and potential pent-up demand.
The revised price target of $0.75 is based on a 7x price-to-earnings (P/E) multiple on Wedbush’s 2027 EPS estimate, a decrease from the previously applied 10x multiple. This adjustment reflects a cautious outlook amid a challenging retail and global economic environment, with significant reliance on a strong holiday season to meet the year’s expectations. Despite better-than-anticipated earnings results, the lowered P/E multiple underscores the uncertainties facing GoPro in the near term. For deeper insights into GoPro’s valuation and financial health, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports covering 1,400+ top stocks.
In other recent news, GoPro Inc (NASDAQ:GPRO). reported its financial results for the first quarter of 2025, achieving a revenue of $134 million, which aligns with the high end of its guidance. The company also saw a 4% year-over-year increase in subscription and service revenue, totaling $27 million. GoPro managed to reduce its non-GAAP operating expenses by 26% and halved its adjusted EBITDA loss to $16 million. The company continues to focus on product innovation, with plans to launch the Max Two 360 camera in 2025. Additionally, GoPro is working on diversifying its supply chain to reduce dependency on China, which is part of its broader cost-reduction strategy. Analysts have not provided any recent upgrades or downgrades for GoPro, but the company is navigating competitive pressures in Asian markets, where revenue has significantly declined. Despite these challenges, GoPro expects to end the year with $75 million in cash and no debt, alongside a subscriber base of 2.4 million.
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