Where GoPro Inc (NASDAQ:GPRO) goes after its initial public offering was discussed by Charlie Anderson in an interview on CNBC.
The comment from the Dougherty and Company senior research analyst comes after GoPro Inc (NASDAQ:GPRO) has gone up for four days in a row after its market debut. With its jump in share prices, the company has now effectively doubled its market cap to $6 billion since its IPO.
CNBC’s Melissa Lee asked Anderson where the company goes now as she noted that the stock currently trades at over $20 above Anderson’s price target. Earlier, Anderson told CNBC that the GoPro Inc (NASDAQ:GPRO) IPO was very oversubscribed. According to the analyst, this is difficult to decide on. He explained:
“It’s tough. I would say the [statistic]I was telling people today is it’s currently trading at higher multiples than Apple has in the last 20 years. It’s up there in the stratosphere and I would say, in general, people who are buying [the stock]are assuming that they are going to sell maybe 10 million cameras up from 4 million last year within a couple of years. So that’s [what I think]are the underlying assumptions of anyone looking at it right here.”
The analyst was then asked whether he would advise clients to take profits in GoPro Inc (NASDAQ:GPRO) since it is now trading over $20 above his initial price target for the stock. Lee also mentioned that Anderson has said that he thinks the stock is now trading based on emotion. Anderson said that it depends on the investor. He continued:
“It just really depends on the person. Some people love long time horizons. Some people are just buying the deal and flipping it. It really depends but it’s a valuation that, frankly, I’m not sure we’ve seen for consumer electronics in a very long time. The ceiling to me would maybe be Garmin in 2007. It got up to 6.5 times sales [and]this is about 5 times [sales].”
Watch the discussion about GoPro Inc (NASDAQ:GPRO) below.